SAN FRANCISCO, April 15, 2020 (GLOBE NEWSWIRE) -- Hagens Berman urges investors in Aaron’s, Inc. (NYSE: AAN) who have suffered significant losses to submit their losses now. A securities fraud class action has been filed, and certain investors may have valuable claims.
Aaron’s, Inc. (AAN) Securities Class Action:
The complaint alleges that Aaron’s misled investors by repeatedly affirming the effectiveness of Aaron’s disclosure controls and procedures for its Aaron's Progressive and AB segments and downplaying the significance of an ongoing FTC investigation into the Company’s compliance with federal antitrust laws.
In truth, Aaron’s was involved in a years-long conspiracy with fellow rent-to-own operators, where the competitors negotiated and executed illegal reciprocal purchase agreements. The agreements swapped customer contracts from rent-to-own stores in various local markets. As a result, one party to the agreement closed down stores and exited a local market, where the other party continued to maintain a presence. Apart from harming competition, the illegal agreements defrauded Aaron’s investors, as Defendants knew Aaron’s earnings from its Progressive and AB segments were partially derived from unlawful business practices and were thus unsustainable.
On Feb. 20, 2020, investors learned the truth when Aaron’s disclosed it reached an agreement with the FTC to settle charges, which required the Company to make a whopping $175 million payment and to “enhance certain compliance-related activities.” This news drove the price of Aaron shares down $10.70, or down over 19%, that day.
On Feb. 21, 2020, the FTC shed additional light on the matter announcing that from June 2015 to May 2018, Aaron’s and two other rent-to-own operators (Buddy’s Newco, LLC and Rent-A-Center, Inc.) negotiated and executed reciprocal purchase agreements in violation of federal antitrust law.
“We’re focused on investors’ losses and proving Aaron intentionally concealed its anticompetitive conduct from shareholders,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of Aaron’s and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Aaron’s should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email AAN@hbsslaw.com.
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Reed Kathrein, 844-916-0895