Shareholders Foundation, Inc.

Prospect Capital Corporation (NASDAQ:PSEC) Investor Alert: Deadline in Lawsuit on July 28, 2014

A Deadline is coming up on July 28, 2014 in the lawsuit for investors in Prospect Capital Corporation (NASDAQ:PSEC) and NASDAQ:PSEC stockholders should contact the Shareholders Foundation at mail@shareholdersfoundation.com

 
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San Diego, CA -- (SBWIRE) -- 07/09/2014 -- A deadline is coming up on July 28, 2014 in the lawsuit filed for investors of Prospect Capital Corporation (NASDAQ:PSEC) over alleged securities laws violations by Prospect Capital.

Investors who purchased shares of Prospect Capital Corporation (NASDAQ:PSEC) Have certain options and there are strict and short deadlines running. Deadline: July 28, 2014. Prospect Capital Corporation (NASDAQ:PSEC) stockholders should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

According to the complaint filed in the U.S. District Court for the Southern District of New York the plaintiff alleges on behalf of purchasers of Prospect Capital Corporation (NASDAQ:PSEC) common shares between August 21, 2013 and May 6, 2014, that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The plaintiff claims that between August 21, 2013 and May 6, 2014 defendants allegedly misrepresented and/or failed to disclose that certain of Prospect Capital Corporation’s wholly owned companies were investment companies for accounting purposes that were required to be consolidated by the Company, that certain of Prospect Capital Corporation’s wholly owned holding companies should have been accounted for as investment companies, that Prospect Capital Corporation’s reported investment income and financial results were misstated, that Prospect Capital Corporation’s internal and financial controls were inadequate, and that Prospect Capital Corporation’s financial statements were materially false and misleading at all relevant times.

On May 6, 2014, Prospect Capital Corporation disclosed that the staff of the Securities and Exchange Commission has asserted that certain of Prospect’s wholly owned companies are investment companies for accounting purposes and must be consolidated. Prospect Capital Corporation 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 Prospect Capital Corporation’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 may be reported as dividend income based on taxable earnings and profits. Shares of Prospect Capital Corporation (NASDAQ:PSEC) declined from $10.81 per share on May 5, 2014, to $9.60 per share on May 13, 2014.

On July 7, 2014, NASDAQ:PSEC shares closed at $10.74 per share.

Those who purchased shares of Prospect Capital Corporation (NASDAQ:PSEC) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com