WAYNE, Pa., March 23, 2016 /PRNewswire/ -- Ryan & Maniskas, LLP that a class action lawsuit has been filed in United States District Court for the Southern District of California on behalf of purchasers of LPL Financial Holdings Inc. ("LPL" or the "Company") (NASDAQ: LPLA) common stock during the period between December 8, 2015 and February 11, 2016 (the "Class Period").
LPL shareholders may, no later than May 23, 2016, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of LPL and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218 or to sign up online, visit: www.rmclasslaw.com/cases/lpla.
The complaint charges LPL and certain of its officers and directors with violations of the Securities Exchange Act of 1934. LPL is an independent broker-dealer, a custodian for registered investment advisors and an independent consultant to retirement plans. Prior to 2010, LPL was majority owned by TPG Capital ("TPG") and Hellman & Friedman LLC, two private equity firms. In November 2010, these private equity firms took LPL public in an initial public offering ("IPO") in which 15.7 million LPL shares were sold to the public at $30 per share. TPG retained a substantial ownership stake in the Company after the IPO and influence over its affairs. Following the IPO, the Company became the subject of several regulatory and governmental investigations into allegedly fraudulent, deceptive and/or legally deficient business practices at LPL and among its network of financial advisors.
The complaint alleges that during the Class Period, defendants issued false and misleading statements and/or failed to disclose adverse information regarding LPL's business and prospects, including that LPL's earnings and revenue were not steady, but were substantially declining; LPL's client assets were not in the midst of a recovery, but were actually deteriorating and would decline by billions of dollars; and LPL's gross profits would not decline "slightly," but significantly, and LPL would in fact experience its worst sequential gross profit decline in four years. As a result of defendants' false statements and/or omissions, LPL common stock traded at artificially inflated prices during the Class Period, reaching a high of $45.06 per share on December 8, 2015.
On December 10, 2015, LPL announced the early completion of its accelerated share repurchase program. TPG 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, LPL announced its fourth quarter and full year 2015 financial results, including adjusted earnings per share of $0.37 per share, well below consensus analyst estimates of $0.51 per share. The Company also revealed disappointing revenues, primarily as a result of dramatically lower commission revenues and revenues from alternative investments, as well as higher-than-expected expenses for the quarter. As a result of this news, the price of LPL common stock dropped $8.76 per share to close at $16.50 per share on February 12, 2016, a one-day decline of nearly 35% and a decline of 63% from the stock's Class Period high.
If you are a member of the class, you may, no later than May 23, 2016, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
For more information regarding this, please contact Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877) 316-3218 or by email at firstname.lastname@example.org or visit: www.rmclasslaw.com/cases/lpla. For more information about class action cases in general or to learn more about Ryan & Maniskas, LLP, please visit our website: www.rmclasslaw.com.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.
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SOURCE Ryan & Maniskas, LLP