NEW YORK, May 29, 2014 /PRNewswire/ -- The Law Office of James C. Kelly is investigating potential claims on behalf of investors who purchased shares of Prospect Capital Corporation common stock (NASDAQ: PSEC), concerning possible violations of federal securities laws.
On May 6, 2014, Prospect Capital disclosed that it may be required to restate its prior financial statements as certain of its wholly owned companies are investment companies for accounting purposes and must be consolidated. An implication of the restatement, revealed by the Company, would be to "decrease [Prospect Capital'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 can be reported as dividend income based on taxable earnings and profits." Thus, as the Company failed to consolidate its wholly owned companies, it improperly inflated its historical net investment income.
On this news, Prospect Capital common stock declined more than 5%, to close at $10.20 per share on May 7, 2014.Investors in Prospect Capital with losses in excess of $10,000 are advised to contact James C. Kelly at (888)-643-7517 or firstname.lastname@example.org for more information concerning the investigation. The Law Office of James C. Kelly has extensive experience representing shareholders in securities class actions. Visit our website for additional information at http://www.jckellylaw.com The Law Office of James C. Kelly244 5th Avenue, Suite K-278 New York, New York 10001Tel: 212-920-5042Toll Free Tel: 888-643-7517Toll Free Fax: 888-224-2078Email: email@example.com Website: http://www.jckellylaw.com Attorney Advertising: Prior Results Do Not Guarantee A Similar Outcome.