Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses In Excess Of $100,000 Investing In Prospect Capital Corporation To Contact The Firm
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Prospect Capital Corporation (“Prospect Capital” or the “Company”) (NASDAQ: PSEC) of the July 28, 2014 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against Prospect Capital and certain executives.
A complaint has been filed on behalf of all persons who purchased Prospect Capital securities between August 21, 2013 and May 6, 2014, inclusive (the “Class Period”) in the Southern District of New York.
The complaint alleges that the Company and its executives violated federal securities laws with respect to its disclosures concerning its business, operations, and prospects.
Specifically, the action alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (i) Prospect Capital lacked adequate internal and financial controls; (ii) certain of Prospect Capital’s wholly owned companies should have been accounted for as investment companies; (iii) Prospect Capital was required to consolidate these investment companies; (iv) as a result, the Company’s reported investment income and financial results were misstated; and (v) as such, the Company’s financial statements were not prepared in accordance with Generally Accepted Accounting Principles (“GAAP”).
On May 6, 2014, after the market close, Prospect Capital filed its 10-Q for the third quarter of 2014 and disclosed that the SEC has asserted that some of Company’s wholly owned companies are investment companies for accounting purposes and are required to be consolidated by the Company. Prospect Capital also announced that it may have to restate its prior financial statements to resolve the issue which would decrease the Company’s historical net investment income.
Following this news, the Company’s stock declined $0.54 per share, or over 5%, to close at $10.20 per share on May 7, 2014.
If you invested in Prospect Capital stock or options between August 21, 2013 and May 6, 2014 and would like to discuss your legal rights, you can contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding Prospect Capital’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330
If you have information regarding this case that you would like to make available, please click here to contact us about our investigation.