SAN FRANCISCO, Nov. 03, 2016 (GLOBE NEWSWIRE) — Hagens Berman Sobol Shapiro LLP reminds investors in Rent-A-Center of the firm’s investigation into potential misstatements that may violate the federal securities laws.
If you purchased or otherwise acquired securities of Rent-A-Center during 2016 and suffered over $50,000 in losses contact Hagens Berman Sobol Shapiro LLP. For more information visit:
https://www.hbsslaw.com/cases/RCII
or contact Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000 or emailing [email protected].
Rent-A-Center shares tumbled over 28% on heavy trading on October 11, 2016, the same day the Company disclosed it was continuing to experience issues with its new Point-of-Sale [POS] system that would have a larger than expected negative impact on Company sales.
The Company’s disclosures apparently represent a complete reversal from its prior statements made on July 28, 2016, in which RCII management noted that POS system issues were fixed and the “distraction” of implementing the POS system was alleviated.
It appears that RCII has still not fully remedied its POS system issues. On October 26, 2016, Rent-A-Center disclosed “[c]ore U.S. revenue decreased by 16.3 percent” and “[c]ore U.S. same store sales decreased by 12.0 percent driven by the store information management system implementation and system outages[.]”
“Whenever a company’s management says significant business issues are fixed, reasonable investors are entitled to take those statements at face value without having to independently vet them,” said Hagens Berman partner Reed Kathrein.
Whistleblowers: Persons with non-public information regarding Rent-A-Center should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email [email protected].
About Hagens Berman
Hagens Berman is a national investor-rights law firm headquartered in Seattle, Washington with offices in 10 cities. The Firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the Firm and its successes can be found at www.hbsslaw.com. Read the Firm’s Securities Newsletter, and visit the blog. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
CONTACT: Contact: Reed Kathrein, 510-725-3000