NEW YORK--(EON: Enhanced Online News)--Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of Texas on behalf of all persons or entities who purchased or otherwise acquired Rent-A-Center, Inc. (NASDAQ:RCII) common stock between July 27, 2015 and October 10, 2016 (the “Class Period”).
“experienced system performance issues and outages that resulted in a larger than expected negative impact on Core sales.”
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose that: (1) Rent-A-Center could not properly implement its new point-of-sale system (the “POS”); (2) the POS was performing extremely poorly, including several instances where the system suffered complete outages; (3) as a result, the Company’s Acceptance Now credit system could not be implemented properly; (4) the Company could not meet revenue and profitability guidance provided to investors; and (5) the Company would need to revise its prior guidance. As a result of the foregoing, Defendants’ statements about Rent-A-Center’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis throughout the Class Period.
On October 11, 2016, Rent-A-Center CEO, Robert D. Davis, announced that following the implementation of the Company’s new point-of-sale system, the Company “experienced system performance issues and outages that resulted in a larger than expected negative impact on Core sales.” Following this news, Rent-A-Center shares declined $3.70 per share on October 11, 2016.
If you purchased or otherwise acquired Rent-A-Center common stock during the Class Period and suffered a loss or continue to hold shares purchased prior to the Class Period, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact J. Brandon Walker, Esq. by email at email@example.com, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information, please go to www.bespc.com.