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Curo Group Holdings Corp.

17 days left to seek lead plaintiff status

Case Summary

Company Name
Curo Group Holdings Corp.
Stock Symbol
CURO
Class Period
July 31, 2018 to October 24, 2018
Motion Deadline
February 3, 2019
Court
District of Kansas

The complaint charges Curo and certain of its senior executives with violations of the Securities Exchange Act of 1934.  Curo provides short-term credit to underbanked consumers in the United States, United Kingdom and Canada.  Curo offers Single-Pay Loans, Unsecured Installment Loans, Open-end Loans and Secured Installment Loans.

The complaint alleges that defendants issued false and misleading statements and/or failed to disclose adverse information regarding Curo’s business and prospects, including about the Company’s efforts to transition its Canadian inventory of products from Single-Pay Loans, for which Curo received extremely high fees, to Open-End Loans, which are lines of credit without a specified maturity date that have lower yields than Single-Pay Loans and require more stringent credit criteria supported by more sophisticated credit analytics.  In this regard, throughout the Class Period, defendants materially misrepresented to investors the deleterious effect that the up-front loan loss provisioning in connection with the transition was having on the Company's financial performance and 2018 full-year Company guidance.  As a result of defendants’ false statement and omissions, Curo securities traded at artificially inflated prices during the Class Period, with the price of its shares reaching a high of more than $31 per share.

Then on October 24, 2018, the Company announced disappointing financial results for the third quarter of 2018 and substantially reduced its guidance for full-year fiscal 2018.  Despite defendants’ positive Class Period statements about the transition and the Company’s 2018 financial guidance, the Company announced, among other things, that for the three months ended September 30, 2018, Canadian revenue decreased $4.4 million, or 8.8%; the provision for losses increased $8.7 million, or 55.5%, because of upfront provisioning on Open-End Loan volumes and mix shift from Single-Pay Loans; and the cost of providing services in Canada increased $2.0 million, or 10.3%.  On this news, the price of Curo shares declined $7.69 per share, falling from $22.87 per share on October 24, 2018 to $15.18 per share on October 25, 2018.

Class Period: July 31, 2018 - October 24, 2018
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