NEW YORK, May 29, 2014 /PRNewswire/ -- The Law Office of
James C. Kelly is investigating
potential claims on behalf of investors who purchased shares of
Prospect Capital Corporation common stock (NASDAQ: PSEC),
concerning possible violations of federal securities laws.
On May 6, 2014, Prospect Capital
disclosed that it may be required to restate its prior financial
statements as certain of its wholly owned companies are investment
companies for accounting purposes and must be
consolidated. An implication of the restatement,
revealed by the Company, would be to "decrease [Prospect Capital'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 can be reported as dividend income based
on taxable earnings and profits." Thus, as the
Company failed to consolidate its wholly owned companies, it
improperly inflated its historical net investment income.
On this news, Prospect Capital common stock declined more than
5%, to close at $10.20 per share on
May 7, 2014.
Investors in Prospect Capital with losses in excess of
$10,000 are advised to contact
James C. Kelly at (888)-643-7517 or
jkelly@jckellylaw.com for more information concerning the
investigation.
The Law Office of James C. Kelly
has extensive experience representing shareholders in securities
class actions. Visit our website for additional information at
http://www.jckellylaw.com
The Law Office of James C.
Kelly
244 5th Avenue, Suite K-278
New York, New York 10001
Tel: 212-920-5042
Toll Free Tel: 888-643-7517
Toll Free Fax: 888-224-2078
Email: jkelly@jckellylaw.com
Website: http://www.jckellylaw.com
Attorney Advertising: Prior Results Do Not Guarantee A Similar
Outcome.
SOURCE The Law Office of James C.
Kelly