Breach Of Duty Investigation: World Acceptance Corp. (Nasdaq: WRLD)

Rhea-AI Summary

Motley Rice LLC is investigating potential breaches of fiduciary duty by officers and directors of World Acceptance Corp. (NASDAQ: WRLD). This follows the company's agreement to pay $21.7 million to resolve SEC claims linked to bribery allegations involving its former Mexican subsidiary. The SEC reported that World Acceptance's management undermined internal audit and compliance functions. Shareholders may be concerned about potential legal ramifications and management accountability.

Positive

• None.

Negative

• World Acceptance Corp. agreed to pay $21.7 million to resolve SEC claims, indicating possible legal and financial risks.
• The SEC criticized the company's management for undermining internal audit and compliance, raising concerns over governance.

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MT. PLEASANT, S.C., Aug. 7, 2020 /PRNewswire/ -- Motley Rice LLC is investigating whether certain officers and directors of World Acceptance Corp. (NASDAQ: WRLD) breached their fiduciary duties to shareholders. World Acceptance Corp. is a consumer loan company headquartered in Greenville, S.C. 

On Aug. 6, 2020, World Acceptance Corp. agreed to pay $21.7 million to resolve claims by the U.S. Securities and Exchange Commission (SEC) that the company's former subsidiary in Mexico paid millions in bribes to that country's government and union officials. According to the SEC's order, "the tone at the top from [WRLD] management did not support robust internal audit and compliance functions, and undermined the effectiveness of those functions."

If you have information that is relevant to the investigation or you would like to discuss the allegations, you may contact Motley Rice securities fraud lawyers Gregg Levin, Joshua Littlejohn and William Norton by calling 1-800-768-4026 toll free, or by email.

About Motley Rice
Motley Rice LLC is one of the nation's largest plaintiffs' litigation firms. With a tradition of representing those whose rights have been violated, Motley Rice attorneys gained recognition for their pioneering asbestos lawsuits, their work with the State Attorneys General in the landmark litigation against Big Tobacco, and their representation of 9/11 families in the ongoing lawsuit against terrorist financiers. The firm continues to handle complex litigation in numerous areas, including securities fraud; antitrust; consumer protection; mesothelioma; environmental contamination; prescription and over-the-counter drugs; other medical devices; human rights; aviation disasters; and wrongful death. Motley Rice, headquartered in Mt. Pleasant, S.C., has additional offices around the country, including in New York, New Jersey, and Washington, D.C. For more information, contact Motley Rice attorneys Gregg Levin (DC, MA, SC), Joshua Littlejohn (SC), or William Norton (MA, NY, SC) 1.800.768.4026 or visit www.motleyrice.com. Motley Rice LLC, a South Carolina Limited Liability Company, is engaged in the New Jersey practice of law through Motley Rice New Jersey LLC. Esther Berezofsky is the attorney responsible for New Jersey practice. Connect with us on Facebook, LinkedIn, Instagram and Twitter.

View original content:http://www.prnewswire.com/news-releases/breach-of-duty-investigation-world-acceptance-corp-nasdaq-wrld-301108476.html

SOURCE Motley Rice LLC

FAQ

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What is the recent investigation involving World Acceptance Corp. (WRLD)?

Motley Rice LLC is investigating potential breaches of fiduciary duty by World Acceptance's officers and directors following a $21.7 million settlement with the SEC related to bribery allegations.

What amount did World Acceptance Corp. (WRLD) agree to pay to resolve SEC claims?

World Acceptance Corp. agreed to pay $21.7 million to settle claims from the SEC regarding bribery by its former subsidiary in Mexico.

What were the allegations against World Acceptance Corp.'s former subsidiary in Mexico?

The allegations involved the payment of millions in bribes to government and union officials in Mexico.

How did the SEC evaluate the management of World Acceptance Corp. (WRLD)?

The SEC criticized World Acceptance's management for not supporting robust internal audit and compliance functions, which undermined their effectiveness.