According to the Complaint, CURO Group Holdings Corp. ("CURO" or the Company) provides short-term credit to underbanked consumers in the United States, the United Kingdom and Canada. In the United States, it operates under two principal brands, “Speedy Cash” and “Rapid Cash.” In the United Kingdom, CURO operates online as “Wage Day Advance” and “Juo Loans.” In Canada, the Company’s stores are branded “Cash Money” and it offers “LendDirect” installment loans online and at certain stores.
The Complaint alleges that during the Class Period, CURO and certain senior executives violated the Securities Exchange Act of 1934 by issuing false and misleading statements, including ongoing financial guidance, relating to CURO's efforts to transition its Canadian inventory of products from "Single-Pay Loans" to "Open-End Loans." In this regard, throughout the Class Period, Defendants materially misrepresented to investors the deleterious effect that the up-front loan loss provisioning in connection with the transition was having on the Company's financial performance and 2018 full-year Company guidance. The truth was revealed after the market closed on October 24, 2018, when the Company announced disappointing financial results for the third quarter of 2018 and substantially reduced its guidance for full-year fiscal 2018.
On March 13, 2019, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed a consolidated Complaint on May 31. Defendants filed a Motion to Dismiss the consolidated Complaint on August 15. On December 3, the Court issued an Order denying Defendants' Motion to Dismiss.
The parties entered into a Stipulation of Settlement on July 31, 2020. On September 4, the Court granted preliminary approval of the Settlement.