CURO Group Holdings Corp. (CURO) May Have Misled Shareholders
In response to a change in Canadian laws, Curo began to develop a strategy to transition its Canadian business out of single-pay loans to installment and line of credit (“open-end”) loan products. Curo assured the transition would be slow with minimal negative impact confined to the second quarter 2018. Though Curo consistently reaffirmed its full year 2018 (“FY18”) financial guidance in its public statements, on October 24, 2018, Curo announced dismal third quarter 2018 results that widely missed analysts’ expectations and revealed a staggering decline of 50% year-over-year in single-pay loan balances, culminating in a significant cut to the Company’s FY18 guidance. On this news, Curo’s stock price fell almost 34% to close at $15.12 per share. The stock has since continued to decline, currently trading at around $8.