Below is a link regarding legal action that has been taken against Conns. The Texas Attorney General's charges in general accuse Conns of selling defective merchandise, selling warranties that apparently are not legal, and unfulfilled obligations that these warranties are supposed to cover. Particularly interesting is their method of selling warranties which is documented with a manual they have that can be downloaded for public viewing.
Http://www.oag. State. Tx.Us/oagNews/release.php? Id=3000
Just from my viewing this, I think Conns will try to settle this one ASAP and do as much damage control to try to prevent a negative word-of-mouth wildfire among the public through media resources. It doesn't look good. I'm sure that some lawyers out there are trying to bundle people together for a civil class action and short sellers taking up positions who will short Conns' stock and depress its value.
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