Two years ago a Kansas City woman, Marie Guadalupe Mejia Alcantara was sued by Portfolio Recovery Associates LLC for not paying a credit card debt that Portfolio claimed they had purchased. Portfolio Recovery Associates, LLC is a wholly owned subsidiary of PRA Group, Inc., which is publicly traded on the New York Stock Exchange, with corporate headquarters in Norfolk, Virginia.
PRG Group, Inc. reported cash collections in 2014 of over $1 BILLION!
Ms. Alcantara, through her consumer attorney, stated continuously that the debt was not hers, and she did not owe any money to Portfolio Recovery Associates despite the consumer’s statements, Portfolio Recovery Associates continued to aggressively pursue the lawsuit to trial.
At the trial, the Judge ruled in favor of Ms. Alcantara, stating that Portfolio Recovery Associates “abused the discovery process and repeatedly violated the court’s discovery orders”.
On May 11, 2015, the jury awarded Ms. Alcantara, the consumer who was being sued by Portfolio Recovery Associates, LLC, $251,000 in actual out of pocket compensatory damages, and $82,999,000 in punitive damages for her counter-claim against the Company, alleging malicious prosecution and impermissible collection practices.
Unless reduced or overturned, the verdict could have a material adverse effect on the Company’s financial condition and/or operations.