- Certain of Prospect’s wholly owned companies were investment companies for accounting purposes that were required to be consolidated by the Company.
- Certain of Prospect’s wholly owned holding companies should have been accounted for as investment companies.
- The Company’s reported investment income and financial results were misstated.
- The Company’s internal and financial controls were inadequate.
- The Company’s financial statements were materially false and misleading at all relevant times.
Law Offices of Howard G. Smith announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all purchasers of the securities of Prospect Capital Corporation (“Prospect” or the “Company”) (NASDAQ:PSEC) between August 21, 2013 and May 6, 2014, inclusive (the “Class Period”). 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: