Settled: May 3, 2019
On December 13, 2018, the Court preliminarily approved an $11 million settlement with Rent-A-Center, Inc., its former CEO Robert D. Davis, and former CFO Guy J. Constant. Rent-A-Center is one of the largest rent-to-own operators in North America. At its stores, customers can rent-to-own electronics, appliances, furniture and other durable items. Customers pay weekly, semi-monthly, or monthly amounts for the rental of durable goods, often with an ability to purchase the product. In general, the Complaint alleges that Defendants made a number of materially false and misleading statements regarding the Company’s new point-of-sale (“POS”) information management system, also referred to as the Store Information Management System (“SIMS”). Defendants allegedly failed to disclose that SIMS had a history of ongoing stability and functionality problems, which jeopardized a number of Company initiatives that depended on its successful Companywide implementation. The Complaint further alleges that when the problems with the POS implementation and its impact on the Company’s sales and collection efforts was disclosed to the market, the Company’s stock price declined causing damages to the proposed class.
The operative complaint in the Action is the Consolidated Amended Class Action Complaint for Violations of Federal Securities Laws, filed on May 5, 2017. The Complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission on behalf of a class of all purchasers of Rent-A-Center common stock. Labaton Sucharow is Lead Counsel in the Action. Lead Plaintiff is Oklahoma Firefighters Pension and Retirement System. City of Hollywood Employees’ Retirement Fund is an additional named plaintiff.
On December 14, 2017, the court adopted the Amended Report and Recommendation of the Magistrate Judge denying defendants’ motion to dismiss.
The Parties reached an agreement in principle to settle the Action on September 13, 2018 and a term sheet was executed on October 8, 2018. The Parties executed the Stipulation and Agreement of Settlement on December 3, 2018.
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, named plaintiff City of Hollywood Employees’ Retirement Fund, and the proposed class.
Submit Claim Form
If you purchased or otherwise acquired the publicly traded common stock of Rent-A-Center during the period from February 2, 2015 through October 10, 2016, inclusive, and were allegedly damaged thereby, you may be entitled to receive money from the proposed settlement. To be eligible for a payment, you must submit a Claim Form to the Claims Administrator so that it is postmarked or received no later than May 2, 2019.
A Settlement Hearing was held on May 3, 2019 before the Honorable Amos L. Mazzant, III, at 10:00 a.m., in Courtroom 208 at the United States District Court for the Eastern District of Texas, Paul Brown U.S. Courthouse, 101 East Pecan Street, Sherman, TX 75090.
If you have questions about the Settlement, please contact Labaton Sucharow at email@example.com or 1-888-218-6877, or contact the Claims Administrator, at (877) 432-3842. Additional information about the Settlement can also be found at: www.RentACenterSecuritiesSettlement.com.