Plano, TX: (Oct-30-07) A class action shareholder lawsuit was brought against Plano-based Rent-A-Center Inc., alleging that the company, as well as current and former officers and directors, violated federal securities laws in 2001.
As part of a settlement reached, the company agreed to pay a prospective $3.6 million to resolve allegations. Sources claim that payments to purchasers of its common stock from April 25, 2001, through Oct. 8, 2001, and administrative fees are expected to be covered by its insurance provider. Company spokespersons claimed that it did not expect the settlement to harm future earnings or impact profits. Neither Rent-A-Center nor any officer and director defendants admitted any liability for any securities laws violations, but claimed that they reached a settlement to avoid the risks and costs of litigation. [
