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Kessler Topaz Meltzer & Check, LLP Announces Shareholder Class Action Filed Against Prospect Capital Corporation -- PSEC

Stocks in this article: PSEC

RADNOR, Pa., June 2, 2014 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action has been filed against Prospect Capital Corp. (Nasdaq: PSEC) ("Prospect Capital") on behalf of purchasers of the Company's common stock between September 14, 2009 and May 6, 2014 (the "Class Period").

Prospect Capital shareholders may, no later than July 28, 2014 , move the Court for appointment as a lead plaintiff of the Class.  Prospect Capital shareholders who wish to discuss this action and their options are encouraged to contact Kessler Topaz Meltzer & Check, LLP ( Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) at (888) 299-7706. 

For additional information about this lawsuit, or to request information about this action online, please visit http://www.ktmc.com/cases_details.php?id=213.

Prospect Capital is a financial services company that primarily lends to and invests in middle market privately-held companies.  The Company invests in senior and subordinated debt and equity of companies in need of capital for acquisitions, divestitures, growth, development and recapitalization.

On May 6, 2014, Prospect Capital filed a Form 10-Q with the Securities and Exchange Commission ("SEC").  Therein, the Company disclosed that "the staff of the SEC has asserted that some of our wholly owned companies are investment companies for accounting purposes and are required to be consolidated by us," and that a restatement of Prospect Capital's financial statements was one possible "near-term resolution of the issue."  On this news, shares of the Company's stock declined $0.54 per share, or over 5 percent, on unusually heavy trading volume.

The Complaint alleges that Prospect Capital and certain of its executive officers violated the Securities Exchange Act of 1934 during the Class Period by making a series of false and misleading statements to shareholders about the Company's revenues, losses and internal controls. Specifically, the Complaint alleges that, in violation of generally accepted accounting principles, Prospect Capital "fraudulently announced inflated revenues, earnings and earnings per share."  Additionally, the Complaint alleges that Prospect Capital misrepresented "its financial results and propriety of its accounting and consolidation of subsidiaries," and that the Company maintained adequate internal controls.

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