Cohen Milstein Sellers & Toll PLLC Announces the Investigation of Regional Management Corporation

WASHINGTON--(BUSINESS WIRE)--

Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Regional Management Corporation (“Regional” or the “Company”) and certain of its officers, directors and underwriters violated the Securities Act of 1933.

A class action lawsuit was filed in the U.S. District Court for the Southern District of New York by another law firm on behalf of purchasers of the common stock of Regional Management Corporation RM pursuant to the Registration Statement issued in connection with Regional Management's September 20, 2013 secondary public stock offering and its December 5, 2013 secondary public stock offering.

Focusing on the two secondary offerings of the Company's stock—the September 20, 2013 offering of approximately 4 million shares priced at $27.50, and the December 5, 2013 offering of approximately 2.35 million shares priced at $31.00, the complaint alleges that the offering documents failed to adequately disclose the Company's: (1) increasing deterioration of underwriting standards, which led to higher percentages of delinquencies and loan charge-offs; (2) failure to adequately reserve for loan losses; and (3) repeated use of debt refinancing tactics which increased loan amounts and interest rates of customers, which was also a practice the Consumer Financial Protection Bureau (“CFPB”) was actively investigating and attempting to stop. In addition, plaintiff alleges that Defendants misstated the Company's fourth quarter and fiscal 2012 financial reports and failed to report defects in its internal controls.

The price of Regional shares fell from $28.09 to $25.32 (approximately 9.9%) on March 13, 2014 in response to the news that its competitor, World Acceptance Corp., had received a Civil Investigative Demand from the CFPB. The shares suffered a second, larger drop on April 30, falling from $22.10 to $15.34 (almost 31%) in response to the Company's release of first quarter results that were well below expectations, blamed on an increase in the Company's provision for credit losses and charge-offs that Defendants attributed to having too many accounts per employee “over an extended period of time” that negatively impacted collections.

Cohen Milstein encourages all investors who purchased Regional common stock pursuant to the Registration Statement issued in connection with Regional's September 20, 2013 secondary public stock offering and its December 5, 2013 secondary public stock offering, or former employees with information concerning this matter to contact the firm.

If you are a Regional shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein's Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at stoll@cohenmilstein.com. If you wish to serve as lead plaintiff, you must move the Court no later than July 29, 2014 to request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may retain Cohen Milstein Sellers & Toll PLLC or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.

Cohen Milstein Sellers & Toll PLLC has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Chicago, Philadelphia and Palm Beach Gardens, and is active in major litigation pending in federal and state courts throughout the nation.

The firm has been repeatedly appointed by federal courts across the country to lead positions in complex multi-district or consolidated litigation. Cohen Milstein Sellers & Toll PLLC has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total over one billion dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.

If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:

Steven J. Toll, Esq.
Rhys Tucker
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
West Tower, Suite 500
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: stoll@cohenmilstein.com; rtucker@cohenmilstein.com

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