SAN DIEGO, CA / ACCESSWIRE / May 16, 2017 / The Shareholders Foundation, Inc. announces that a lawsuit is pending for certain purchasers of NASDAQ: EZPW shares against EZCORP Inc. over alleged Violations of Securities Laws.
Investors who purchased shares of EZCORP Inc. in November 2012 or earlier and continue to hold any of those NASDAQ: EZPW shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
On April 30, 2015, EZCORP announced a delay in its earnings release for the second quarter of fiscal 2015 due to an ongoing review of the Company's Grupo Finmart loan portfolio.
On May 20, 2015, the Company announced it had received a notice of noncompliance with NASDAQ's listing requirements due to its failure to timely file its 10Q.
Om July 17, 2015, EZCORP announced it will restate its financial statements for fiscal 2014 and the first quarter of fiscal 2015. The restatement pertains to six structured asset sales, pursuant to which a portion of the Grupo Finmart loan portfolio was sold to a special purpose trust (the "Asset Sales"). Due to certain control rights that Grupo Finmart retained as servicer of the loans, the trusts should have been accounted for as "variable interest entities" and, thus, the Asset Sales should not have been accounted for as sales. Approximately $40 million in gain will be eliminated. EZCORP also failed to adequately identify out-of-payroll loans and to track the aging of non-performing loans. According to the Company, the foregoing issues indicate material weaknesses in EZCORP's internal control over financial reporting and deficiencies in the Company's disclosure controls and procedures.
On July 20, 2015, a lawsuit was filed against EZCORP Inc. over alleged securities laws violations. The plaintiff alleged that the defendants made allegedly false and/or misleading statements and/or failed to disclose, among others that EZCORP Inc. improperly recognized particular structured assets sales, that EZCORP Inc. improperly classified certain loans, that, as a result, EZCORP Inc. overstated its gains on assets sales and accrued interest revenue, that, as such, EZCORP Inc.'s financial statements were not prepared in accordance with Generally Accepted Accounting Principles, that EZCORP Inc. lacked adequate internal and financial controls, and that, as a result of the foregoing, defendants' statements were materially false and misleading at all relevant times.
On January 11, 2016 and November 4, 2016 amended complaints were filed and on May 8, 2017 the court denied in part the defendants motion to dismiss the case.
Those who purchased EZCORP Inc. (NASDAQ: EZPW) shares should contact the Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
CONTACT:
Shareholders Foundation, Inc.
Michael Daniels
+1 (858) 779-1554
mail@shareholdersfoundation.com
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
SOURCE: Shareholders Foundation, Inc.
ReleaseID: 463284
