SAN DIEGO & EVANSVILLE, Ind.--(BUSINESS WIRE)-- Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed against OneMain Holding, Inc. (NYSE: OMF). The complaint is brought on behalf of all purchasers of OneMain Holdings securities between March 3, 2015 and November 7, 2016, for alleged violations of the Securities and Exchange Act of 1934 by OneMain Holdings officers and directors. OneMain Holdings, Inc., through its subsidiaries, provides consumer finance and insurance products and services.
View this press release on the firm's Shareholder Rights Blog: http://www.robbinsarroyo.com/shareholders-rights-blog/onemain-holdings-inc-september-2017
OneMain Accused of Overestimating Projected Income Following Merger
According to the complaint, on March 3, 2015, Springleaf Holdings, Inc. entered into a definitive merger agreement to acquire OneMain Financial Holdings, LLC from CitiFinancial Credit Company, a wholly-owned subsidiary of Citigroup. The combined company was renamed OneMain Holdings, Inc. Without basis in fact, the company represented that synergies between the two companies would result in a combined company that would be significantly more profitable than either company on its own. On November 13, 2015, Jay N. Levine, President and Chief Executive Officer ("CEO") of Springleaf , and later President and CEO of OneMain, predicted a positive financial outlook, declaring that he expected OneMain to generate core net income of $830 million to $900 million, or $6.20 to $6.70 per share in 2017. However, the complaint alleges that OneMain officials omitted material information regarding the projected net income to be achieved by the company following the merger.
On November 8, 2016, during a conference call with investors, OneMain disclosed that it was slashing guidance for full-year 2016 and 2017, with respect to the growth in its loan portfolios and its preferred measure of earnings. In particular, the company revealed that it would lower its guidance for its consumer insurance adjusted earnings per share from $4.20-$4.70 per share to a range of $3.60-$3.70 per share for 2016, and from $5.60-$6.10 per share to $3.75-$4.00 per share for 2017. Further, the company stated that it would lower guidance for receivables growth in 2016 from 10-15% to 5% and in 2017 from 10-15% to 5-10%. On this news, OneMain's share price declined by $10.67 per share, or approximately 38%, to close at $16.90 per share on November 8, 2016.
OneMain Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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Source: Robbins Arroyo LLP