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Prospect Capital Corporation Message Board

  • mike.putzman mike.putzman Jun 2, 2014 12:15 PM Flag

    anyone know how much lawsuit will possibly pay each shareholder?


    Over the course of time, Sept 14,2009 to present, have owned at various times a total of 63,900 shares.

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    • I got my settlement check today from the law firm Dewey Cheatem and Howe.
      I'll get eighteen cents, but it was sent registered mail with postage due, so I'll have to pay over $5.00 to collect my eighteen cents.

    • That doesn't really tell us much, you could have bought and sold the same 500 shares repeatedly and that statement could still be true.

    • Are you assuming their case will even result in damages? Remember, this is an accounting issue that is currently under review. There is not a shred of evidence at this point they did anything wrong. Furthermore it must be demonstrated they INTENTIONAL, knowingly and willfully misled investors.

    • If you bought and held PSEC since 2009, you would have gotten over $6 in dividends. In Septenber 2009, PSEC was trading between $9.70 and $10.30. If you got the stock within this price range, you are way ahead and have no claim to a loss.

      I have no idea why law firm think they can go back to 2009. The issue reported on May 6th is related to FASB 2013-08 946, which first became effective on December 15, 2013. In fact, in early 2012 the FASB was asking for opinions, and by 2013 it was still a proposed change.

      There are many other factors to the price drop on May 6th. First, there is still selling pressure from the removal of Russel indexes. Second, the market has been volatile. Third, the short interest shot upward significantly on the news. Basically, a 5% drop in the stock price is within the normal fluctuations we have had for the past few years. Was that 5% really because PSEC announced that the SEC is asking them to restate financials for the quarters ending on Dec 31, 1013 and March 31, 2014?

      On the subject of inflated earnings: PSEC told us that a restatement would increase taxable income. NII is not relevant to the IRS.

      Even if these class action lawsuits get certified, shareholders likely won't see a dime. Check it out for yourself. In almost every instance, lawyers collect their fees (usually inflated fees of about $1000 per hour), and consumers or shareholders almost always get nothing. The number of lawfirms filing this illustrates what is known as "me too" lawsuits. Lawfirms abuse this stuff so much it isn't funny. Small wonder the Supreme Court is looking into changing a few things about such class action laawsuits. They do a great deal of harm to businesses to the tune of about $10,000 per house hold every year.

      Because FASB 2013-08 946 was recently implemented, the claim of fraud is very thin. Everything else in these lawsuits has no merit. Most investors won't have any losses, and the suits may not get certified becasue of that.

    • Possibly $500.00 per share. Man, you should be in line for almost 32 million dollars if these things settle as they have in the past. Can I borrow some........... PUTZ (you have a very apropos name), from Joliet if I remember right famed for it's prison?

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