Investigation of CURO Group Holdings
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CURO Group Holdings, Corp. (CURO) Sued for Misleading Shareholders About FY 2018 Guidance
Shareholders filed a securities fraud class action against CURO, alleging that between April 27, 2018 and October 24, 2018, defendants materially misrepresented to investors the negative effect that the rapid transition from payday loans to open-end loans, along with other changes, was having on the company’s financial performance and 2018 full-year company guidance. The false statements caused CURO stock to trade at artificially inflated prices – as high as $31 per share. However, as the truth of the wrongdoing was revealed the stock plummeted to $15.18 per share.
CURO challenged these allegations and on December 3, 2019, U.S. District Court Judge John W. Lungstrum denied CURO’s motion to dismiss plaintiffs’ claims, stating that the facts supported the notion that CURO’s executives “were at least reckless in failing to disclose that the decision to accelerate the transition would call into question the accuracy of the 2018 guidance.” The Court’s denial of CURO’s motion to dismiss could result in substantial financial damage to CURO as litigation proceeds.