Encore Capital Group, Inc. under Investor Investigation

Posted on 23. May, 2011 by Collections Recon in Collection News, Press Releases

The Shareholders Foundation announces that the investigation on behalf of investors in Encore Capital Group, Inc.  (NASDAQ:ECPG) continues and ECPG stockholders should contact the Shareholders Foundation at mail@shareholdersfoundation.com

An investigation on behalf of investors in Encore Capital Group, Inc.  (NASDAQ:ECPG) shares over possible breaches of fiduciary duties by Encore Capital Group or certain of its officers and directors was announced.

The investigation by a law firm concerns allegations that Encore Capital Group’s business practices violated consumers’ rights, including violations of the Fair Debt Collection Practices Act (FDCPA) and comparable state statutes.

Encore Capital Group, Inc. and rival debt-collection firms buy delinquent credit-card obligations and other loans in large batches, sometimes filing lawsuits to recover the money.

In 2008 a consumer filed a lawsuit in the United States District Court for the Northern District of Ohio Western Division, against the Encore Capital Group subsidiaries Midland Credit Management, Inc. and Midland Funding LLC alleging that their business practices violated consumers’ rights under the FDCPA and the Ohio Consumer Sales Practices Act.

On February 14, 2011, the Company disclosed that while it denied the claims it reached an agreement in principal to settle this lawsuit on a national class basis for approximately $5.2 million, subject to entering into a definitive settlement agreement and obtaining court approval after notice to the class.

On November 2, 2010 and December 17, 2010 two national class actions were filed in the United States District Court for the Southern District of California. The plaintiffs allege that certain Encore Capital Group subsidiaries violated the Telephone Consumer Protection Act (“TCPA”) by calling consumers’ cellular phones without their prior express consent.

Those who are current long term investors in Encore Capital Group, Inc.  (NASDAQ:ECPG) shares, and/or those who have any information relating the investigation including former employees and /or whistleblowers, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.

Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com
www.ShareholdersFoundation.com
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The Shareholders Foundation, Inc. is a professional portfolio monitoring service and an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We believe that together we can combine the interests of many investors, and use the size of our interest as leverage against the giant corporations. We offer help, support, and assistance for every shareholder. We help investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

Tags: consumers rights, Encore Capital Group, investigation, shareholder, Shareholders Foundation