In re Hall v. Rent-A-Center, Inc., Civil No. 4:16-CV-00978-ALM-CMC
You or someone in your family may have purchased or otherwise acquired the common stock of Rent-A-Center, Inc. during the period from February 2, 2015, through October 10, 2016, inclusive.
The Court directed that the Notice be sent to Settlement Class Members because they have a right to know about the proposed Settlement of this class action lawsuit, and about all of their options, before the Court decides whether to approve the Settlement. If the Court approves the Settlement, and after objections and appeals are resolved, an administrator appointed by the Court will make the payments that the Settlement allows.
The Notice explains the lawsuit, the Settlement, Settlement Class Members’ legal rights, what benefits are available, who is eligible for them, and how to get them.Back To Top
Rent-A-Center is one of the largest rent-to-own operators in North America. At its stores, customers can rent-to-own electronics, appliances, furniture and other durable items. In general, the Complaint alleges that Defendants made a number of materially false and misleading statements regarding the Company’s new point-of-sale (“POS”) information management system, also referred to as the Store Information Management System (“SIMS”). Defendants allegedly failed to disclose that SIMS had a history of ongoing stability and functionality problems, which jeopardized a number of Company initiatives that depended on its successful Companywide implementation. The Complaint further alleges that when the problems with the POS implementation and its impact on the Company’s sales and collection efforts was disclosed to the market, the Company’s stock price declined causing damages to the proposed class.Back To Top
In a class action, one or more persons or entities (in this case, Lead Plaintiff), sue on behalf of people and entities who have similar claims. Together, these people and entities are a “class” and each is a “class member.” Class actions allow the adjudication of many individuals’ similar claims that might be too small economically to bring as individual actions. One court resolves the issues for all class members at the same time, except for those who exclude themselves, or “opt-out,” from the class.Back To Top
The Court did not finally decide in favor of Plaintiffs or Defendants. Instead, both sides, with the assistance of retired Honorable Layn R. Phillips, acting as a mediator, agreed to a settlement. That way, they avoid the risks and cost of a trial. Plaintiffs and their attorneys think the Settlement is in the best interest of the Settlement Class.Back To Top
The Court directed, for the purposes of the proposed Settlement, that everyone who fits this description is a Settlement Class Member and subject to the Settlement unless they are an excluded person or take steps to exclude themselves from the Settlement Class:
All persons and entities that purchased or otherwise acquired Rent-A-Center, Inc. publicly-traded common stock during the period from February 2, 2015 through October 10, 2016, inclusive and who were allegedly damaged thereby.
If one of your mutual funds purchased RAC common stock during the Class Period, that does not make you a Settlement Class Member, although your mutual fund may be. You are a Settlement Class Member only if you individually purchased or acquired RAC common stock during the Class Period. Check your investment records or contact your broker to see if you have any eligible purchases or acquisitions.
If you are still not sure whether you are included, you can ask for free help. You can call 1-877-432-3842 for more information. Or you can fill out and return the Claim Form, or submit it online, to see if you qualify.Back To Top
The CUSIP for the eligible common stock is 76009N100. The ticker symbol from February 2, 2015 through October 10, 2016 was RCII.Back To Top
Yes. There are some individuals and entities who are excluded from the Settlement Class by definition. Excluded from the Settlement Class are:
Also excluded from the Settlement Class is anyone who timely and validly seeks exclusion from the Settlement Class in accordance with the procedures described in FAQ 14.Back To Top
In exchange for the Settlement and the release of the Released Claims against the Released Defendant Parties (see FAQ 13), Defendants have agreed to cause an $11 million cash payment to be made, which, along with any interest earned, will be distributed after deduction of Court-awarded attorneys’ fees and litigation expenses, Notice and Administration Expenses, Taxes, and any other fees or expenses approved by the Court (the “Net Settlement Fund”), to Settlement Class Members who send in valid and timely Claim Forms. The Plan of Allocation is described in more detail on pages 10-14 of the Notice.Back To Top
To qualify for a payment from the Net Settlement Fund, you must submit a timely and valid Claim Form. The Claim Form is enclosed with the Notice. You can also download a copy of the Claim Form here.
Please read the instructions contained in the Claim Form carefully, fill out the Claim Form, include all the documents the form requests, sign it, and mail it to the mailing address below or submit it online here. Claim Forms must be postmarked or received online no later than May 2, 2019.
Mailing address for Claim Forms:
Hall v. Rent-A-Center, Inc.
P.O. Box 3727
Portland, OR 97208-3727
At this time, it is not possible to make any determination as to how much any individual Settlement Class Member may receive from the Settlement.
By following the instructions in the Plan of Allocation, located in the Notice, you can calculate what is called your Recognized Claim. It is unlikely that you will get a payment for all of your Recognized Claim.Back To Top
The Settlement Amount, and any interest it earns, is called the “Settlement Fund.” The Settlement Fund, after deduction of Court-approved attorneys’ fees and expenses, Notice and Administration Expenses, Taxes, and any other fees or expenses approved by the Court is the “Net Settlement Fund.” The Net Settlement Fund will be distributed to members of the Settlement Class who timely submit valid Claim Forms that show a Recognized Claim according to the formulas in the Plan of Allocation (described in the Notice) approved by the Court.
Settlement Class Members who do not timely submit valid Claim Forms will not share in the Net Settlement Fund, but will otherwise be bound by the terms of the Settlement and what happens in the Action. The Court may approve the Plan of Allocation or modify it without additional notice to the Settlement Class.
The Plan of Allocation is on pages 10-14 of the Notice, found here.Back To Top
It is not possible at this time to determine when the Settlement proceeds will be distributed to eligible Settlement Class Members. The Court will hold a Settlement Hearing on May 3, 2019 to decide whether to approve the Settlement. If the Court approves the Settlement, there might be appeals. It is always uncertain whether appeals can be resolved, and if so, how long it would take to resolve them. It also takes time for all the Claim Forms to be processed. Once all the Claim Forms are processed and claims are calculated, Lead Counsel, without further notice to the Settlement Class, will apply to the Court for an order distributing the Net Settlement Fund to Settlement Class Members. Please be patient.Back To Top
Unless you exclude yourself, you will stay in the Settlement Class, which means that upon the “Effective Date” you will release all “Released Claims” against the “Released Defendant Parties.” For additional information and a definition of these terms, please review Question 10 of the Notice.
If you do not want a payment from this Settlement, but you want to keep the right to sue or continue to sue any of the Defendants or other Released Parties on your own about the same legal issues in this case, then you must take steps to get out of the Settlement Class. This is called excluding yourself from, or is sometimes referred to as “opting out” of, the Settlement Class.Back To Top
To exclude yourself from the Settlement Class, you must mail a signed letter stating that you “request to be excluded from the Settlement Class in Hall v. Rent-A-Center, Inc. et al., No. 4:16-cv-00978-ALM (E.D. Tex.).” You cannot exclude yourself by telephone or email.
Each request for exclusion must also state:
A request for exclusion must be submitted so that it is received no later than April 12, 2019 to the following address:
Hall v. Rent-A-Center, Inc.
P.O. Box 3727
Portland, OR 97208-3727
This information is needed to determine whether you are a member of the Settlement Class. Your exclusion request must comply with these requirements in order to be valid. If you ask to be excluded, do not submit a Claim Form because you cannot receive any payment from the Net Settlement Fund. Also, you cannot object to the Settlement because you will not be a Settlement Class Member. However, if you submit a valid exclusion request, you will not be legally bound by anything that happens in the Action, and you may be able to sue (or continue to sue) Defendants and the other Released Defendant Parties in the future.Back To Top
No. Unless you properly exclude yourself, you give up any rights to sue the Defendants and the other Released Defendant Parties for any and all Released Claims. If you have a pending lawsuit against any of the Released Defendant Parties, speak to your lawyer in that case immediately. You must exclude yourself from this Action to continue your own lawsuit. Remember, the exclusion deadline is April 12, 2019.Back To Top
No, only Settlement Class Members are eligible to recover money from the Settlement.Back To Top
Labaton Sucharow LLP is Lead Counsel in the Action and represents all Settlement Class Members. You will not be separately charged for these lawyers. The Court will determine the amount of attorneys’ fees and expenses, which will be paid from the Settlement Fund. If you want to be represented by your own lawyer, you may hire one at your own expense.Back To Top
Lead Counsel has been prosecuting the Action on a contingent basis and has not been paid for any of its work. Lead Counsel, on behalf of itself and Liaison Counsel, will seek an attorneys’ fee award of no more than 25% of the Settlement Fund, which will include accrued interest. Lead Counsel will also seek payment of litigation expenses incurred by Plaintiffs’ Counsel in the prosecution of this Action of no more than $440,000, plus accrued interest, which may include an application in accordance with the PSLRA for the reasonable costs and expenses (including lost wages) of the Plaintiffs directly related to their litigation efforts. No other law firms will share in the legal fees awarded by the Court and any attorneys’ fees and expenses awarded will be paid from the Settlement Fund. Settlement Class Members are not personally liable for any such fees or expenses.Back To Top
If you are a Settlement Class Member, you can object to the proposed Settlement or any of its terms, the proposed Plan of Allocation of the Net Settlement Fund, and/or Lead Counsel’s Fee and Expense Application. You may write to the Court about why you think the Court should not approve any or all of the Settlement terms or related relief. If you would like the Court to consider your views, you must file a proper objection within the deadline, and according to the following procedures.
To object, you must send a signed letter saying that you wish to object to the proposed Settlement, the Plan of Allocation, and/or the Fee and Expense Application in “Hall v. Rent-A-Center, Inc. et al., No. 4:16-cv-00978-ALM (E.D. Tex.).” Your objection must state why you are objecting and whether your objection applies only to you, a subset of the Settlement Class, or the entire Settlement Class.
The objection must also state:
Unless otherwise ordered by the Court, any Settlement Class Member who does not object in the manner described in this FAQ will be deemed to have waived any objection and will be forever foreclosed from making any objection to the proposed Settlement, the Plan of Allocation, and/or Lead Counsel’s Fee and Expense Application. Your objection must be filed with the Court no later than April 12, 2019 AND mailed or delivered to the following counsel so that it is received no later than April 12, 2019:
|Court||Lead Counsel||Defendants' Counsel Representatives|
|Clerk of the Court
United States District Court
Eastern District of Texas
Paul Brown U.S. Courthouse
101 East Pecan Street
Sherman, TX 75090
|Labaton Sucharow LLP
Jonathan Gardner, Esq.
New York, NY 10005
|Baker Botts L.L.P.
Jessica B. Pulliam, Esq.
2001 Ross Avenue
Dallas, TX 75201
You do not need to attend the Settlement Hearing to have your written objection considered by the Court. However, any Settlement Class Member who has complied with the procedures described in this FAQ and below in FAQ 23 may appear at the Settlement Hearing and be heard, to the extent allowed by the Court. An objector may appear in person or arrange, at his, her, or its own expense, for a lawyer to represent him, her, or it at the Settlement Hearing.Back To Top
Objecting is telling the Court that you do not like something about the proposed Settlement, Plan of Allocation, or Lead Counsel’s Fee and Expense Application. You can still recover money from the Settlement. You can object only if you stay in the Settlement Class. Excluding yourself is telling the Court that you do not want to be part of the Settlement Class. If you exclude yourself from the Settlement Class, you have no basis to object because the Settlement and the Action no longer affect you.Back To Top
The Court will hold the Settlement Hearing on May 3, 2019 at 10:00 a.m., in Courtroom 208 at the United States District Court for the Eastern District of Texas, Paul Brown U.S. Courthouse, 101 East Pecan Street, Sherman, TX 75090.
At this hearing, the Court will consider whether: (i) the Settlement is fair, reasonable, adequate, and should be approved; (ii) the Plan of Allocation is fair and reasonable, and should be approved; and (iii) the application of Lead Counsel for an award of attorneys’ fees and payment of litigation expenses is reasonable and should be approved. The Court will take into consideration any written objections filed in accordance with the instructions in FAQ 19. We do not know how long it will take the Court to make these decisions.
You should be aware that the Court may change the date and time of the Settlement Hearing without another notice being sent to Settlement Class Members. If you want to attend the hearing, you should check with Lead Counsel or this Settlement website to be sure that the hearing date and/or time has not changed.Back To Top
No. Lead Counsel will answer any questions the Court may have. But, you are welcome to attend at your own expense. If you submit a valid and timely objection, the Court will consider it and you do not have to come to Court to discuss it. You may have your own lawyer attend (at your own expense), but it is not required. If you do hire your own lawyer, he or she must file and serve a Notice of Appearance in the manner described in the answer to FAQ 23 no later than April 12, 2019.Back To Top
You may ask the Court for permission to speak at the Settlement Hearing. To do so, you must, no later than April 12, 2019, submit a statement that you, or your attorney, intend to appear in “Hall v. Rent-A-Center, Inc. et al., No. 4:16-cv-00978-ALM (E.D. Tex.).” Persons who intend to present evidence at the Settlement Hearing must also include in their objections, the identities of any witnesses they may wish to call to testify and any exhibits they intend to introduce into evidence at the Settlement Hearing. You may not speak at the Settlement Hearing if you exclude yourself from the Settlement Class or if you have not provided written notice of your intention to speak at the Settlement Hearing in accordance with the procedures described in this FAQ and FAQ 19.Back To Top
If you do nothing and you are a member of the Settlement Class, you will receive no money from this Settlement and you will be precluded from starting a lawsuit, continuing with a lawsuit, or being part of any other lawsuit against Defendants and the other Released Defendant Parties concerning the Released Claims. To share in the Net Settlement Fund, you must submit a Claim Form. To start, continue, or be a part of any other lawsuit against Defendants and the other Released Defendant Parties concerning the Released Claims, you must exclude yourself from the Settlement Class.Back To Top
This website summarizes the proposed Settlement. More details are contained in the Stipulation, which can be viewed here. You may also review other documents in the case during business hours at the Office of the Clerk of the United States District Court, Eastern District of Texas, Paul Brown United States Courthouse, 101 East Pecan Street, Sherman, TX 75090. Subscribers to PACER, a fee-based service, can also view the papers filed publicly in the Action through the Court’s online Case Management/Electronic Case Files System at www.PACER.gov.
You may also call the Claims Administrator toll-free at 1-877-432-3842, or email info@RentACenterSecuritiesSettlement.com to request a copy of the Stipulation or with additional questions.
DO NOT CALL OR WRITE THE COURT, THE OFFICE OF THE CLERK OF THE COURT, OR RENT-A-CENTER REGARDING THIS SETTLEMENT.Back To Top