Last week insideARM reported on a sharp rise in first quarter earnings for PRA Group (PRAA).
On Tuesday of this week (May 12th) in a Form 8-K (Other Events) filing with the Securities and Exchange Commission PRAA reported the following:
On May 11, 2015, an unfavorable jury verdict was delivered against Portfolio Recovery Associates, LLC (the “Company”), a wholly owned subsidiary of PRA Group, Inc., in a matter pending in Jackson County, Missouri. The jury awarded Guadalupe Mejia $251,000 in compensatory damages and $82,999,000 in punitive damages for her counter-claim against the Company, alleging malicious prosecution and impermissible collection practices. Although the Company appreciates the jury’s service, it believes the verdict and magnitude of the award to be erroneous and intends to promptly request that the court set aside such an inappropriate award. Unless reduced or overturned, the verdict could have a material adverse effect on the Company’s financial condition and/or operations.
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