Hall v. Rent-A-Center, Inc.
Status: Ongoing Case
On March 16, 2017, Labaton Sucharow was appointed lead counsel in a securities class action against Rent-A-Center, Inc., its former CEO Robert D. Davis, and former CFO Guy J. Constant. Rent-A-Center owns and operates more than 3,000 stores across North America that, according to the company’s website, offer customers the ability to purchase furniture, electronics and computers through rental purchase agreements “without needing access to credit.”
The plaintiffs allege that between July 27, 2015 and October 10, 2016, the defendants made material misstatements and omissions in violation of the federal securities laws concerning, among other things, the risks and benefits of a new point-of-sale (POS) system that Rent-A-Center began implementing in early 2015. Contrary to numerous positive representations made by the defendants about the new POS system which was designed to manage sales, inventory, collections, customer relationship management, and payment tracking, the implementation of the POS system in the company’s stores was marred by serious and continuous problems and performance outages of extended length. When the defendants finally disclosed the negative impact the implementation of the POS system had on its sales and revenue, Rent-A-Center’s share price dropped nearly 30 percent in one day. The plaintiffs allege that the foregoing, as well as other material misstatements and omissions made by the defendants, caused the company’s investors to suffer losses.
The case is Hall v. Rent-A-Center, Inc., No. 16-cv-0978 (E.D. Tex.). Labaton Sucharow represents lead plaintiff Oklahoma Firefighters Pension and Retirement System and the proposed class.