02:07 PM EDT, 08/14/2024 (MT Newswires) -- Upbound Group's ( UPBD ) Acima units are facing a lawsuit filed Wednesday by New York Attorney General Letitia James over alleged violation of the state's rent-to-own law.

Acima Digital, Acima Holdings and Acima Solutions have been accused of deceiving more than 100,000 New York consumers and by allegedly "leasing" goods such as tires and mattresses that could not be returned, overcharging, and misleading them about financing cost.

Acima was acquired by Upbound subsidiary Rent-A-Center in 2021, but it continued to use the same business model.

The lawsuit, which covers more than 160,000 transactions since 2015 under retail-purchase agreements with New York consumers, is seeking civil penalties and restitution for impacted consumers.

Upbound Group ( UPBD ) did not immediately reply to MT Newswires' request for comment.

Shares of the company were down 2% in recent trading.

Price: 30.90, Change: -0.71, Percent Change: -2.25