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NEW YORK, Jan. 06, 2022 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against FirstCash, Inc. (NASDAQ: FCFS), Talkspace, Inc. (NASDAQ: TALK), Rollins, Inc. (NYSE: ROL), and Purple Innovation, Inc. (NASDAQ: PRPL). Our investigations concern whether these companies have violated the federal securities laws and/or engaged in other unlawful business practices. Additional information about each case can be found at the link provided.
FirstCash, Inc. (NASDAQ: FCFS)
On November 12, 2021, the Consumer Financial Protection Bureau (“CFPB”) filed a lawsuit against FirstCash and Cash America West, alleging that the two companies violated the Military Lending Act by charging higher than the allowable 36% annual rate on pawn loans to active-duty service members and their dependents. The CFPB”s lawsuit seeks an injunction, redress for affected borrowers, and a civil money penalty.
On this news, FirstCash’s stock price fell $7.50 per share, or 8.71%, to close at $78.64 per share on November 12, 2021.
For more information on the FirstCash investigation go to: https://bespc.com/cases/FCFS
Talkspace, Inc. (NASDAQ: TALK)
On November 15, 2021, post-market, Talkspace issued a press release “announc[ing] . . . that its co-founder and CEO, Oren Frank, has decided to step down from his position as CEO and Board member of Talkspace, effective today.” Shortly thereafter on the same day, Talkspace issued a press release reporting its financial results for the third quarter of 2021. Among other items, Talkspace disclosed that its net revenue for the quarter “came in below management expectations due to a lower number of B2C [business-to-consumer] customers and a one-time non-cash reserve adjustment for credit losses on receivables related to prior periods.”
On this news, the Company’s share price declined by $1.23 per share, or approximately 36.3%, from $3.39 per share to close at $2.16 per share on November 16, 2021.
For more information on the Talkspace investigation go to: https://bespc.com/cases/TALK
Rollins, Inc. (NYSE: ROL)
On October 28, 2020, Rollins disclosed a U.S. Securities and Exchange Commission (“SEC”) investigation into how the Company established accruals and reserves at period-end and the impact of those accruals and reserves on reported earnings for periods beginning January 1, 2015. The Company’s subsequently filed Annual Report later disclosed the results of an internal Company-initiated investigation that found a significant deficiency in the Company’s internal controls relating to the documentation and review of accounting entries for certain reserves and accruals. Then, on October 29, 2021, Rollins reported that it had initiated discussions with the SEC staff regarding a potential investigation resolution.
For more information on the Rollins investigation go to: https://bespc.com/cases/ROL
Purple Innovation, Inc. (NASDAQ: PRPL)
On November 9, 2021, Purple announced disappointing third quarter earnings “largely driven by impacts from our manufacturing backlog that were longer-lasting than we anticipated. Our lack of inventory impacted sales through all of our channels which are deeply interconnected.”
On this news, Purple’s stock fell 24%. On this news, the Company’s share price declined by $1.23 per share, or approximately 36.3%, from $3.39 per share to close at $2.16 per share on November 16, 2021.
For more information on the Purple investigation go to: https://bespc.com/cases/PRPL
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.