DFC Global Corp Investor Lawsuit alleges False and Misleading Statements
A lawsuit was filed on behalf of investors in DFC Global Corp shares over alleged securities laws violations. Deadline: Jan. 21, 2014. NASDAQ-DLLR investors should contact the Shareholders Foundation at firstname.lastname@example.org
If you purchased a significant amount of shares of DFC Global Corp between January 28, 2011 through August 22, 2013, and / or if you purchased (NASDAQ-DLLR shares in 2012 or earlier and currently hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: January 21, 2014. NASDAQ-DLLR investors should contact the Shareholders Foundation at email@example.com (mailto:mail@
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired DFC Global Corp between January 28, 2011 through August 22, 2013, that DFC Global Corp and certain of its senior executives violated the Securities Exchange Act of 1934.
More specifically, the plaintiff alleges that between January 28, 2011 through August 22, 2013, DFC Global Corp misrepresented to investors that it complied with government regulations and guidance with regard to irresponsible lending practices in the United Kingdom ("U.K."), and that the Company made conservative underwriting decisions when making loans. Furthermore, the plaintiff claims that DFC Global Corp also knowingly understated its loss rates for loans, and issued false earnings guidance for its 2013 fiscal year.
On April 1, 2013, DFC Global Corp announced selected, preliminary financial results for the fiscal third quarter ended March 31, 2013. Among other things, DFC Global Corp lowered its fiscal 2013 diluted operating earnings guidance.
Shares of DFC Global Corp declined from $16.64 per share on March 28, 2013, to $13.04 per share on April 1, 2013.
On May 10, 2013, DFC Global Corp announced its financial results for the first quarter 2013. Among other things, DFC Global Corp said that during the three months ended March 31, 2013, it identified interim impairment indicators at its DFS reporting unit and performed an interim impairment test of its goodwill, indefinite-lived intangible asset and certain other intangible assets. DFC Global Corp said that the impairment indicators resulted principally from the examination performed by the Consumer Financial Protection Bureau (“CFPB”) during the fiscal year ending June 30, 2013, which delayed DFC Global’s negotiations with potential lending partners, and other possible funding arrangements, to replace the current third-party national bank that funds a majority of the MILES program loans. DFC Global Corp also said it has been informed by the CFPB that it intends to initiate an administrative proceeding against DFC Global Corp relating to its marketing of certain vehicle service and insurance products and to the requirement that MILES program loans be repaid via a military allotment.
Then on August 22, 2013, DFC Global Corp announced its fiscal fourth quarter and full-year 2013 results. DFC Global Corp reported that its Total Revenue rose from over $1.06 billion for the 12 months period that ended on June 30, 2012 to over $1.12 billion for the 12 months period that ended on June 30, 2013 while its Net Income of $52.40 million for the 12 months period that ended on June 30, 2012 declined to a Net loss of $0.70 for the 12 months period that ended on June 30, 2013.
DFC Global Corp also issued its fiscal year 2014 outlook. Among other things, the executive Vice President and Chief Financial Officer of DFC Global Corp said that the company expects to incur approximately $10.0 million to $15.0 million of expense in fiscal 2014 to support ongoing regulatory related activities, including regulatory advisory costs, legal opinions and analysis, and audit and regulatory compliance costs in fiscal 2014.
Shares of DFC Global Corp dropped from $15.90 per share on August 22, 2013, to $11.02 per share on August 27, 2013.
Shares of DFC Global Corp closed on May 20, 2013 at $15.22 per share.
Those who purchased shares of DFC Global Corp have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 – 1554
Shareholders Foundation, Inc.