Satterlee Stephens LLP Represents Former Ezcorp CEO in Successful Defense and Settlement of Putative Shareholder Class Action


The United States District Court for the Southern District of New York recently approved the settlement of a proposed shareholder class action against EZCorp. Inc., a provider of consumer loans. The settlement was reached following defendants’ successful motion to dismiss, which knocked out the majority of the complaint’s allegations and dramatically reduced the potential damages that could be alleged.  The complaint had sought damages on behalf of all purchasers of EZCorp stock between April 19, 2012 and October 6, 2014, based on alleged misstatements concerning (i) financial reporting by EZCorp during the proposed class period, (ii) the company’s process for approving a consulting contract with an affiliate, and (iii) the operational practices of a UK subsidiary. The settlement was reached after the dismissal of all claims except those relating to the UK subsidiary and while defendants’ challenges to class certification remained pending. James Coster and Charles Keeley of Satterlee Stephens LLP, together with Rick Yeomans of Graves Dougherty Hearon & Moody, represented EZCorp’s former CEO in the defense and settlement of the action.