The Shareholders Foundation Inc. announced that a lawsuit is pending in South Carolina on behalf of certain buyers of shares of World Acceptance Corp. over the company's alleged violations of laws concerning securities.
World Acceptance in July 2013 announced it would be unable to file its Annual Report with the Securities and Exchange Commission for the fiscal year that ended on March 31, 2013.
In March 2014, World Acceptance announced that the Consumer Financial Protection Bureau issued a Civil Investigation Demand. According to World Acceptance, the CFPB's investigation was to determine "whether finance companies or other unnamed persons have been or are engaging in unlawful acts or practices in connection with the marketing, offering or extension of credit" in violation of certain sections of the Consumer Financial Protection Act, the Truth in Lending Act and other federal consumer financial laws.
A lawsuit was filed against World Acceptance in April 2014, citing alleged securities laws violations. The plaintiff claimed that defendants made allegedly false and/or misleading statements and/or failed to disclose that World Acceptance's loan practices don’t abide by the Consumer Financial Protection Act and/or the Truth in Lending Act, that World Acceptance Corp lacked adequate internal and financial controls; and that as a result of the above, World Acceptance's financial statements, assurances and expectations with regard to the company's growth, operations and business prospects were false and misleading at all relevant times.
World Acceptance is a small-loan consumer finance company. The company offers short-term small loans, medium-term larger loans, related credit insurance products and ancillary products and services to people who have limited access to other sources of consumer credit.
In September 2014, World Acceptance filed a motion to dismiss the case.
In December 2015, the plaintiff filed a second amended complaint and last week the defendants filed their motion to dismiss the case.
The Shareholders Foundation is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market.