Hynes Keller & Hernandez, LLC is investigating potential claims against the Board of Directors of Aaron’s, Inc. (NYSE: AAN) concerning possible breaches of fiduciary duty. The directors and officers of Aaron’s made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Company issued materially false and/or misleading statements and/or failed to disclose that: (1) the highly touted proprietary algorithm of the Company’s subsidiary, Progressive Finance Holdings, LLC, was plagued with software issues that hampered Progressive’s ability to determine which customers met leasing qualifications; and (2) Progressive suffered a loss of critical data that impacted its ability to make loans and collect payments.
On October 30, 2015, Aaron’s disclosed that Progressive lost two critical data feeds in February 2015, which negatively impacted the Company’s ability to make loans and collect payments. In addition, Aaron’s lowered the full-year guidance because “higher bad debt expense and merchandise write offs due to a temporary interruption of certain data attributes we use to approve leases, as well as software issues that delayed our ability to identify and begin collections on certain delinquent loans.”
These revelations drove the price of Aaron shares down $8.88, or over 26%, to close at $24.67 on October 30, 2015.
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