LITTLE ROCK, Ark., Jan. 8, 2002 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Coates, LLP announced today that a class action has been filed in the United States District Court for the Eastern District of Texas, Texarkana Division on behalf of purchasers of Rent-A-Center Inc. ("Rent-A-Center" or the "Company") (Nasdaq:RCII) publicly traded securities during the period between April 25, 2001 and October 8, 2001 inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's Website at http://www.classlawyer.com/pr/rent_a_center.pdf.
The complaint charges Rent-A-Center and certain of its officers and directors with issuing a series of material misrepresentations to the market during the Class Period, thereby artificially inflating the price of Rent-A-Center publicly traded securities. For example, on April 25, 2001, Rent-A-Center issued a press release announcing record results for the first quarter of 2001 and highlighting the Company's resilience in a weakening economy. The representations in the press release were, according to the allegations of the complaint, materially false and misleading because the Company did not disclose that its expenses were rising dramatically as Rent-A-Center attempted to combat weakening demand with deep discounts and promotions. While in possession of this adverse non-public information, Rent-A-Center completed a secondary offering of 3,200,000 shares of its common stock at $42.50 per share on May 25, 2001. Defendant J. Ernest Talley (Chairman and CEO until October 8, 2001) ("Talley") sold 1,700,000 Rent-A-Center shares in the secondary offering, grossing over $72 million, and defendant Mark E. Speese (Director until October 8, 2001, thereafter Chairman and CEO) ("Speese") sold 500,000 shares, grossing over $72 million. Then, on May 31, 2001, defendant Talley sold an additional 1,955,000 shares of Rent-A-Center common stock at $40.38 per share, grossing over $78 million. Subsequently, on October 8, 2001, only five months after the secondary offering, Rent-A-Center issued a press release announcing that earnings for the third and fourth quarter of 2001 would be significantly less than the Company's previous guidance to the market, due to rising expenses. In response to this announcement, Rent-A-Center's stock price dropped by 19% in one day on heavy trading volume.
If you bought Rent-A-Center publicly traded securities between April 25, 2001 and October 8, 2001 inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than March 5, 2002. If you are a member of this class, you can join this class action online at http://www.classlawyer.com/sign_up.html. Any member of the purported class may move the Court to serve as lead plaintiff through Cauley Geller Bowman & Coates, LLP or other counsel of their choice, or may choose to do nothing and remain an absent class member.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents investors throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's Website at www.classlawyer.com.
CAULEY GELLER BOWMAN & COATES, LLP Investor Relations Department: Jackie Addison, Sue Null or Shelly Nicholson P.O. Box 25438 Little Rock, AR 72221-5438 Toll Free: 1-888-551-9944 E-mail: info@classlawyer.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.