SOURCE: Bernstein Litowitz Berger & Grossmann LLP

October 17, 2014 21:39 ET

Bernstein Litowitz Berger & Grossmann LLP Announces Securities Class Action Suit Filed Against EZCORP, Inc. and Certain of Its Officers and Affiliates, Expanding Class Period Alleged in Related Action Against EZCORP, Inc.

NEW YORK, NY--(Marketwired - Oct 17, 2014) - Bernstein Litowitz Berger & Grossmann LLP ("BLB&G") today announced that it has filed a securities class action lawsuit on behalf of the Automotive Machinists Pension Plan against EZCORP, Inc. ("EZCORP" or the "Company") (NASDAQ: EZPW), as well as certain of the Company's officers (the "Officer Defendants"), and its controlling shareholder, Phillip Ean Cohen ("Cohen") and MS Pawn Limited Partnership ("MS Pawn"). The action asserts claims under the Securities Exchange Act of 1934 ("Exchange Act") on behalf of investors in EZCORP common stock during the period of April 19, 2012 through October 6, 2014, inclusive (the "Class Period"). A copy of the Complaint is available on BLB&G's website at www.blbglaw.com.

The Complaint expands the class period that was asserted in a related action against EZCORP, captioned Close v. EZCORP, Inc., No. 14-cv-6834 (S.D.N.Y.) ("Close"), which is the first-filed securities class action in this matter and is presently pending before the Honorable Andrew L. Carter, Jr. Pursuant to the notice published on August 22, 2014 in connection with the filing of the Close action, as required by the Private Securities Litigation Reform Act of 1995, investors wishing to serve as lead plaintiff are required to file a motion for appointment as lead plaintiff by no later than October 21, 2014. The filing of the Complaint by BLB&G does not alter that deadline.

The Complaint alleges that beginning on April 19, 2012 and throughout the Class Period, EZCORP and certain of its senior executives violated provisions of the Exchange Act by disseminating false and misleading press releases, financial statements, filings with the Securities and Exchange Commission and statements during investor conference calls. As alleged in the Complaint, throughout the Class Period, EZCORP and certain of its senior executives misrepresented significant facts concerning EZCORP's business and operations, including that the Company and its Cash Genie business complied with all relevant regulations governing its businesses. The Complaint also alleges that the Defendants misrepresented the nature of EZCORP's consulting relationship with an entity owned by Cohen, the Company's controlling shareholder.

In a series of corrective disclosures, EZCORP revealed drastic changes to the Company's senior leadership, a significant decline in growth, and admitted that its Cash Genie business appeared to have committed "serious" violations of consumer protection laws. On the last day of the Class Period, the Company revealed a reorganization of its business, explaining that it was exiting its online businesses in both the United Kingdom (its "Cash Genie" operations) and the United States, that these changes would result in approximately $110 million in goodwill impairments and other charges, and that it was lowering its guidance. As a result of these disclosures, the price of EZCORP stock declined dramatically, damaging the members of the class.

The action asserts claims under Sections 10(b) and 20(a) of the Exchange Act against EZCORP and the Officer Defendants, and asserts claims under Section 20(a) of the Exchange Act against the Officer Defendants, Cohen and MS Pawn as control persons of EZCORP.

The deadline for filing a motion for appointment as lead plaintiff is October 21, 2014. Any member of the proposed Class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Avi Josefson of BLB&G at 212-554-1493, or via e-mail at avi@blbglaw.com.

Since its founding in 1983, BLB&G has built an international reputation for excellence and integrity. Specializing in securities fraud, corporate governance, shareholders' rights, employment discrimination, and civil rights litigation, among other practice areas, BLB&G prosecutes class and private actions on behalf of institutional and individual clients worldwide. Unique among its peers, BLB&G has obtained several of the largest and most significant securities recoveries in history, recovering billions of dollars on behalf of defrauded investors. More information about BLB&G can be found online at www.blbglaw.com.

Contact Information

  • CONTACT:
    Avi Josefson
    Bernstein Litowitz Berger & Grossmann LLP
    1285 Avenue of Americas, 38th Floor
    New York, New York 10019
    Telephone: (212) 554-1493