World Acceptance Corporation Executives Under Investigation
Schubert Jonckheer & Kolbe LLP is investigating whether certain officers and directors of World Acceptance Corporation (NASDAQ: WRLD) breached their fiduciary duties to the company and its shareholders.
On April 22, 2014, a class action was filed on behalf of purchasers of the World Acceptance stock during the period January 30, 2013 through April 28, 2014. The class action alleges that the company violated the federal securities laws by issuing false and misleading statements regarding the company’s value and growth, and engaging in and concealing deceitful business and lending practices, which caused the market price of World Acceptance shares to be inflated during the class period. The suit further alleges that during the class period, World Acceptance routinely boosted its effective interest rates through two practices: the company bilked customers into purchasing worthless credit insurance products and manipulated them into refinancing loans, ignoring underwriting standards and improperly recording such loans in violation of GAAP, in order to create the misleading perception of significant loan growth.
On May 28, 2015, the defendants’ motion to dismiss the class action complaint was denied.
Current World Acceptance shareholders who purchased their shares prior to January 30, 2013 may be able to pursue a shareholder derivative action through which World Acceptance insiders may be held accountable for their actions, prevent future misconduct, and bring long-term value back to the company.
If you currently own World Acceptance stock and wish to obtain additional information about the investigation and your legal rights, please fill out our form (at right) or contact Miranda Kolbe either via email at email@example.com or by phone at 415-788-4220.