Faruqi & Faruqi, LLP Announces Investigation Of Penson Worldwide, Inc. (PNSN)
Faruqi & Faruqi, LLP, a national law firm concentrating on investor rights, consumer rights and enforcement of federal antitrust laws, is investigating potential wrongdoing at Penson Worldwide, Inc. (“Penson” or the “Company”) (NASDAQ: PNSN). Faruqi & Faruqi, LLP seeks to determine whether Penson violated federal securities laws in connection with statements made to the Company’s shareholders.
The investigation focuses on whether certain individuals violated federal securities laws by, among other things, failing to disclose that: (1) approximately $43 million of the Company’s approximately $96-97 million in receivables were unlikely to be collected as they were collateralized by illiquid securities; (2) the Company’s assets should have been written down by the end of 2010 as they were materially overstated; and (3) the Company overstated its reported income and EBITDA.
On August 4, 2011, the Company announced that it had recorded a non-cash write down of $43 million, which amounted to a loss of $0.94 per share net of tax, against approximately $96.6 million of nonaccrual receivables. On this news, the share price of Penson common stock plummeted 19% from $2.61 to $2.12 on August 5, 2011.
If you purchased Penson securities between February 10, 2011 and August 4, 2011, and you would like to discuss your legal rights, you can contact us by calling Anthony Vozzolo or Richard W. Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org or email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Penson’s conduct during the period in question 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.