Dallas, Texas 05/20/2014 (FINANCIALSTRENDS) – Following Prospect Capital Corporation (NASDAQ:PSEC)’s announcement that it has drawn the scrutiny of the SEC (Securities and Exchange Commission) regarding its accounting practices, certain law firms including Block & Leviton LLP and Pomerantz LLP announced to have been investigating, on behalf of Prospect Capital shareholders, possible securities law violations by the company. Earlier, the SEC challenged the accounting for subsidiaries and questioned whether the company must consolidate its subsidiaries to be in compliance with GAAP (Generally Accepted Accounting Principles).
The Possible Violations:
On Tuesday, May 6, 2014, Prospect Capital Corporation (NASDAQ:PSEC) filed its Form 10-Q with the SEC for quarter ended March 31, 2014 wherein it mentioned that the company may require to restate its previous financial statement with regards to certain subsidiaries consolidated for financial statement purpose. Such a restatement could severely decrease the company’s historical net investment income. The loss of this benefit will negatively impact the company’s financial results.
Following this announcement on May 6, 2014, the share price has witnessed over double digit fall, costing more than $300 million to shareholders, in the aggregate.
An Appeal by Law Firms:
Block & Leviton LLP requested shareholders of Prospect Capital Corporation (NASDAQ:PSEC) and encouraged whistleblowers to contact attorney Steven P. Harte, in case they have any relevant information pertaining to this investigation, or have queries about their legal rights. Harte can be reached at Steven@blockesq.com or (617) 398-5600. Block & Leviton is a Boston-based law firm and it has been helping investors nationwide for over 70 years for violations of securities laws.
Pomerantz LLP also announced that if investors have purchased shares of the company that have been affected by recent announcements, then they can contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, (ext. 237). Pomerantz LLP has its offices in New York, San Diego, Florida and Chicago and is considered one of the premier law firms in the areas of securities and corporate litigations.
Yesterday, the stock of Prospect Capital closed at $9.92, gaining 0.51% from its previous close.