STEVENSON, Md., May 29, 2014 (GLOBE NEWSWIRE) -- The securities litigation law firm of Brower Piven, A Professional Corporation, announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Prospect Capital Corporation ("Prospect" or the "Company") (Nasdaq:PSEC) securities during the period between September 14, 2009 and May 6, 2014, inclusive (the "Class Period"), and informs investors who wish to become proactively involved in the litigation that they have until July 28, 2014 to seek appointment as lead plaintiff.
If you have suffered a loss from investment in Prospect securities purchased on or after September 14, 2009 and held through the revelation of negative information on May 6, 2014, as described below, and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, without cost or obligation to you, please visit our website at http://www.browerpiven.com/currentsecuritiescases.html. You may also request more information by contacting Brower Piven either by email at email@example.com or by telephone at (410) 415-6616.
No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than July 28, 2014 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in Company units during the Class Period.
The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the defendants' failure to disclose during the Class Period that the Company's reported investment income and financial results were misstated because certain of Prospect's wholly owned companies were investment companies (including holding companies which should have been treated as investment companies) for accounting purposes that were required to be consolidated by the Company.
According to the complaint, following the Company's announcement on May 6, 2014 that the staff of the Securities and Exchange Commission had asserted that certain of Prospect's wholly owned companies are investment companies for accounting purposes and must be consolidated and that the Company may need to restate its prior financial statements to resolve the issue, which restatement could impact the amount of income that may be reported as dividend income based on taxable earnings and profits, the value of Prospect shares declined significantly.
Attorneys at Brower Piven have extensive experience in litigating securities and other class action cases and have been advocating for the rights of shareholders since the 1980s. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.
CONTACT: Charles J. Piven Brower Piven, A Professional Corporation 1925 Old Valley Road Stevenson, Maryland 21153 Telephone: 410-415-6616 firstname.lastname@example.orgSource: Brower Piven, A Professional Corporation