Block & Leviton LLP Announces That It Has Filed A Securities Class Action Lawsuit Against Prospect Capital Corporation And Certain Of Its Officers And Directors

BOSTON, May 28, 2014 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com) announces that it has filed a class action lawsuit against Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect" or the "Company") and certain of its officers.  The lawsuit, captioned Willey v. Prospect Capital Corporation et al., No. 14 CV 3796, is pending in the United States District Court for the Southern District of New York. 

The lawsuit alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, on behalf of investors who purchased or otherwise acquired Prospect's securities during the period September 14, 2009, through May 6, 2014, inclusive (the "Class Period"). 

The complaint asserts that Prospect, through its officers and directors, made false and misleading statements and omissions regarding the Company's internal financial controls and its accounting for certain of its subsidiaries and the consolidation of those subsidiaries.  These statements are alleged to have been false and misleading when made because:  (i) the Company was suffering from grossly deficient internal controls and therefore was susceptible to accounting fraud; (ii) Defendants failed to disclose the true nature of the accounting irregularities regarding the accounting for its subsidiaries; and (iii) the Company's financial statements during the Class Period were inaccurate in numerous material respects.  The improper accounting has been the subject of an SEC inquiry, and was done in violation of SEC policies.

If you are a member of the Class, you may, no later than July 28, 2014, request that the court appoint you as Lead Plaintiff for the Class.  You may contact the attorneys at Block & Leviton to discuss your rights in the case.  You may also retain counsel of your choice and you need not take any action at this time to be a class member.  If you have any questions regarding your rights related to this action or have information relevant to the claims asserted in the complaint, please contact attorney Steven P. Harte of Block & Leviton, LLP at (617) 398-5600 or email him at [email protected].

SOURCE Block & Leviton LLP

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