Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, and the securities litigation firm of Powers Taylor LLP announce that a class action lawsuit has been filed against Prospect Capital Corporation (“Prospect Capital” or “Company”) (NasdaqGS: PSEC) and several officers and directors for acts taken during the period of August 21, 2013 to May 6, 2014 (the “Class Period”).
Based upon the allegations in the class action, the firms are investigating additional legal claims against the officers and Board of Directors of Prospect Capital. If you are an affected Prospect Capital shareholder and want to learn more about the lawsuit or join the action, contact Willie Briscoe at The Briscoe Law Firm, PLLC, (214) 239-4568, or via email at WBriscoe@TheBriscoeLawFirm.com, or Patrick Powers at Powers Taylor LLP, toll free (877) 728-9607, or via e-mail at email@example.com. There is no cost or fee to you.
In the complaint, the defendants are alleged to have violated certain provisions of the Securities Exchange Act of 1934. Specifically, the complaint alleges, among other things, that defendants misrepresented and/or failed to disclose that certain of Prospect Capital’s wholly owned companies were investment companies for accounting purposes that were required to be consolidated by the Company. Additionally, Prospect Capital’s reported investment income and financial results were misstated because certain of its wholly owned holding companies should have been accounted for as investment companies. Due to the failure to report the investment companies, Prospect Capital’s financial statements were not prepared in accordance with Generally Accepted Accounting Principles (“GAAP”). The Company also failed to maintain adequate internal and financial controls. As a result of these failures, the Company’s financial statements were materially false and misleading. When the information came to light, PSEC’s stock plummeted.