| Company: | Prospect Capital Corporation |
| Ticker Symbol: | PSEC |
| Class Period: | Aug-21-13 to May-6-14 |
| Date Filed: | Jun-2-14 |
| Lead Plaintiff Deadline: | Aug-1-14 |
| Court: | Southern District of New York |
| Allegations: | |
Prospect is a financial services company that primarily lends to and invests in middle-market privately held companies. The Complaint alleges that, throughout the Class Period, defendants misrepresented and/or failed to disclose that:
Certain of Prospect' wholly owned companies were investment companies for accounting purposes that were required to be consolidated by the Company.
Certain of Prospect' wholly owned holding companies should have been accounted for as investment companies.
The Company' reported investment income and financial results were misstated.
The Company' internal and financial controls were inadequate.
The Company' financial statements were materially false and misleading at all relevant times.
On May 6, 2014, the Company disclosed that the staff of the Securities and Exchange Commission has asserted that certain of Prospect' wholly owned companies are investment companies for accounting purposes and must be consolidated. The Company further disclosed that it may need to restate its prior financial statements to resolve the issue, and that one potential effect of a restatement would be to decrease the Company' 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.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
