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Shareholder Class Action Filed Against Rent-A-Center, Inc.

Notice is hereby given that a class action lawsuit has been filed on behalf of those who purchased or otherwise acquired Rent-A-Center, Inc., (“Rent-A-Center”) (NASDAQ: RCII) securities between July 27, 2015, and October 10, 2016, both dates inclusive (the "Class Period").

Rent-A-Center investors may receive additional information about the case by clicking the link "Join this Class Action" above.

Rent-A-Center operates a network of stores that provide consumer electronics, appliances, computers, and furniture to consumers under rental purchase agreements. In the summer of 2015, the Company began implementing a point of sale (“POS”) system and customer credit program in an attempt to control inventory and increase revenue and profitability. However, the Company’s new POS system was not properly implemented and caused severe harm to Rent-A-Center’s overall operations.

The complaint alleges that during the Class Period Rent-A-Center and certain of its executive officers made false and/or misleading statements and/or failed to disclose the following: (1) that Rent-A-Center could not properly implement its new POS; (2) that the POS was performing extremely poorly, including several instances where the system suffered complete outages; (3) that as a result, the Company’s credit system could not be implemented properly; (4) that the Company could not meet revenue and profitability guidance provided to investors; and (5) that, as such, the Company would need to revise its prior guidance.  The complaint further alleges that, as a result of the foregoing, the Company’s statements about its business, operations and prospects were false and misleading and/or lacked a reasonable basis at all relevant times.

On July 27, 2016, Rent-A-Center reported its second quarter 2016 financial and operational results.  For the quarter the Company reported diluted earnings per share (“EPS”) of $0.41, and further reported that Core U.S. same store sales had decreased by 6.7% driven by, among other things, “the impact and acceleration of the point of sale system rollout.”  Additionally, Rent-A-Center’s Chief Executive Officer (“CEO”) disclosed that “[t]he point of sale implementation negatively impacted Core revenue in the second quarter and reduced our portfolio making it necessary to revise our outlook for the year.”  On this news, shares of the Company’s stock declined $2.34 per share, or over 17%, to close on July 28, 2016 at $10.92 per share.

Then, on October 11, 2016, Rent-A-Center reported preliminary third quarter 2016 financial and operational results.  Therein, the Company disclosed that it expected to report that Core U.S. same store sales for the third quarter would be down approximately 12% and that diluted EPS for the quarter would be between $0.05 and $0.15.  Additionally, Rent-A-Center’s CEO disclosed that, “[f]ollowing the implementation of our new point-of-sale system, we experienced system performance issues and outages that resulted in a larger than expected negative impact on Core sales.”  On this news, shares of Rent-A-Center’s stock declined $3.70 per share, or over 28%, to close on October 11, 2016 at $9.18 per share.


If you are a member of the class described above, you may no later than February 21, 2017 move the Court to serve as lead plaintiff of the class, if you so choose. 

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will will adequatley represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.

Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@ktmc.com.

CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087 1-888-299-7704 (toll free) or 1-610-667-7706
Or by e-mail at infor@ktmc.com

Please complete this form and list your purchase and sale transaction(s) for Rent-A-Center, Inc. (NASDAQ: RCII) securities between July 27, 2015, and October 10, 2016, both dates inclusive (the "Class Period"):

Information Sheet
* Denotes required field
Acquisitions
Date Aquired
Number of Shares Acquired
Acquisition Price Per Share
Sales
Date Sold
Number of Shares Sold
Selling Price Per Share
Did you purchase shares of Rent-A-Center, Inc. prior to the class period?
Are you a current or former employee of Rent-A-Center, Inc. ?
The submission of this form does not create an attorney-client relationship, nor an obligation on the part of Kessler Topaz or you to file a lead plaintiff motion in this matter. Any information you submit will be maintained as confidential. If Kessler Topaz, in its sole discretion, believes that you might be an appropriate lead plaintiff candidate, Kessler Topaz will contact you to discuss the matter and whether to establish an attorney client relationship. By signing this form you are authorizing us to contact you regarding this case and/or future cases.
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