NEW YORK, May 28, 2014 (GLOBE NEWSWIRE) -- The Rosen Law Firm announced today that a class action lawsuit has been filed on behalf of all purchasers of the securities of Prospect Capital Corporation (Nasdaq:PSEC) during the period August 21, 2013 and May 6, 2014, inclusive (the "Class Period") seeking to recover investors' losses.
To join the Prospect Capital class action, visit the website at http://rosenlegal.com or call Phillip Kim, Esq. or Kevin Chan, Esq. toll-free at 866-767-3653 or email email@example.com or firstname.lastname@example.org for information on the class action.
NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER AND DO NOTHING AT THIS POINT. YOU MAY RETAIN COUNSEL OF YOUR CHOICE.
According to the lawsuit, defendants misrepresented and/or failed to disclose that several of Prospect's wholly owned companies were required to be consolidated because they should have been accounted for as investment companies in accordance with Generally Accepted Accounting Principles ("GAAP"). Therefore, Prospect's investment income and financial results were misstated and the internal and financial controls were inadequate.
Prospect revealed on May 6, 2014 that the Securities and Exchange Commission informed the Company that Prospect's wholly owned companies were investment companies and for accounting purposes needed to be consolidated. Prospect further disclosed that it would have to restate prior financial statements which had the potential to decrease the Company's historical net investment income by the amount of interest and structuring income paid by such wholly owned companies in excess of the amount of income that may be reported as dividend income based on taxable earnings and profits. After this revelation, the price of Prospect shares declined $0.54 per share, or more than 5.02%, closing at $10.20 per share on May 7, 2014, on unusually heavy volume.
A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must act before July 28, 2014. If you wish to join the litigation or to discuss your rights or interests regarding this class action, please contact, Phillip Kim, Esq. or Kevin Chan, Esq. of The Rosen Law Firm toll free at 866-767-3653 or via e-mail at email@example.com or firstname.lastname@example.org.
The Rosen Law Firm focuses on prosecuting securities class action litigation and actions involving financial fraud. The Rosen Law Firm represents investors throughout the globe. This notice may constitute attorney advertising.
CONTACT: Laurence Rosen, Esq. Phillip Kim, Esq. Kevin Chan, Esq. The Rosen Law Firm P.A. 275 Madison Avenue 34th Floor New York, New York 10016 Tel: (212) 686-1060 Toll Free: 1-866-767-3653 Fax: (212) 202-3827 email@example.com firstname.lastname@example.org email@example.com www.rosenlegal.comSource: The Rosen Law Firm PA PC