SAN FRANCISCO, April 28, 2016 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, reminds LPL Financial Holdings, Inc. (NASDAQ:LPLA) investors of the May 23, 2016 lead plaintiff deadline in the securities class action lawsuit related to knowing false financial guidance given in December 2015.
If you suffered significant losses because of your purchases of LPL between December 8, 2015 and February 11, 2016 or have information that will help our investigation contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation by calling 510-725-3000, emailing LPLA@hbsslaw.com or visiting https://www.hbsslaw.com/cases/LPLA. The lawsuit was filed in the U.S. District Court for the Southern District of California and investors have until May 23, 2016 to move the court to participate as a lead plaintiff.
On December 8, 2015, Defendants’ stated that LPL had an “earnings stream that is quite steady”, it had been “executing it well”, it was in the midst of a “recovery” and experienced a “nice rebound” in client assets, and its commission revenues were “slow” but would be “more of the same that we saw in the third quarter.” On December 10, 2015, LPL announced the early completion of its accelerated share repurchase program in which its alleged controlling shareholder, TPG Capital, sold 4.3 million shares of LPL common stock at $43.27 per share for approximately $187 million in proceeds.
Then, on February 11, 2016 Defendants disclosed LPL’s reported results on that date were 27% below analyst expectations. In particular, fourth quarter alternative investment commissions decreased 75% year over year and G & A expenses sequentially increased 37%.
“The February 2016 disclosures severely undercut those made just 2 months beforehand, in December 2015,” said Hagens Berman partner Reed Kathrein. “Add this to the huge sale of stock by TPG on December 10th and it looks like insider selling.”
Whistleblowers: Persons with non-public information regarding LPL Financial Holdings Inc. should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email LPLA@hbsslaw.com.
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