FirstCash Holdings, Inc. owns and operates pawn stores in the United States and Latin America. As of December 31, 2020, the Company operated over 2,700 pawn stores, with more than 1,000 located in the United States. Formerly, FirstCash also offered domestic payday and installment loans, but ceased offering these services in June 2020.
It has been alleged that First Cash (NASDAQ: FCFS) failed to disclose adverse facts about FirstCash’s business, operations and prospects, which were known to the company, its officers and directors, or recklessly disregarded by them, as follows: that FirstCash had made more than 3,600 loans to over 1,000 active-duty members of the military and their families at usurious interest rates above 36% – and often exceeding 200% – in violation of the Military Lending Act ("MLA"); that FirstCash’s financial results were, in substantial part, the product of the Company’s violations of the MLA; and that as a result of the foregoing, FirstCash was exposed to a material undisclosed risk of legal, reputational and financial harm if the Company’s violations of the MLA were ever publicly disclosed.
Current FirstCash shareholders who have held FirstCash shares since on or about June 1, 2017, can seek corporate reforms, the return of funds spent defending litigation back to the company, and a court approved incentive award, at no cost to them.
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