INVESTOR ALERT: Law Offices of Howard G. Smith Announces Lead Plaintiff Deadline In The Class Action Lawsuit Against Conn's, Inc.

BENSALEM, Pa.--(BUSINESS WIRE)--

Law Offices of Howard G. Smith reminds investors that purchasers of the securities of Conn's, Inc. (“Conn's” or the “Company”) CONN between September 2, 2014 and December 9, 2014, inclusive (the “Class Period”), have until February 10, 2015, to file a motion to be appointed as lead plaintiff in the shareholder lawsuit filed in the United States District Court for the Southern District of Texas. Conn's operates specialty retail locations in Texas, Louisiana, Arizona, Oklahoma and New Mexico, offering home appliance, furniture and mattress, consumer electronics and home office products.

The lawsuit alleges that defendants made false and/or misleading statements and/or failed to disclose to investors that: (1) the Company was increasing its business and financial results by using underwriting and collections practices that, despite defendants' statements to the contrary, weakened the Company's portfolio quality and left it vulnerable to substantial increases in bad debt; (2) the Company was experiencing rising delinquencies at a substantially different rate than it was representing; (3) the Company's credit segment practices substantially threatened the Company's financial performance; and (4), as a result of the foregoing, the Company's statements were materially false and misleading and/or lacked a reasonable basis at all relevant times.

On December 9, 2014, the Company reported a net loss for its fiscal 2015 third quarter, resulting primarily from significantly higher than expected losses in its credit segment. According to the Company, delinquency rates have increased, and provisions for bad debt for the three months ended October 31, 2014, were $72 million − an increase of $49.4 million from the same period in the prior year.

The Company further announced that its board of directors established a Credit Risk Compliance Committee and that the Company's chief financial officer was leaving the Company. In addition, the Company retracted its full-year earnings guidance, pending its ongoing review of strategic alternatives and the oversight initiatives. Following this news, Conn's shares dropped more than 40%, or $14.26 per share, to close at $20.83 per share on December 9, 2014, on unusually heavy volume.

If you are a member of the Class described above, you may move the Court no later than February 10, 2015, to serve as lead plaintiff, if you meet certain legal requirements. To be a member of the Class, you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at http://www.howardsmithlaw.com.