SAN DIEGO & BOSTON--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP is investigating whether certain officers and directors of LPL Financial Holdings Inc. (NasdaqGS: LPLA) breached their fiduciary duties to shareholders.
The October 2, 2017, amended securities class action complaint alleges violations of the Securities and Exchange Act of 1934 against LPL and certain of its officers and directors. According to the complaint, LPL misled shareholders about its business prospects in the fourth quarter of 2015. LPL executives allegedly indicated at a December 8, 2015 conference that the company had “an earnings stream that was quite steady” and had experienced a “nice rebound” in client assets over the previous two months. LPL also said gross profits would drop only “slightly on a sequential basis,” when in fact the drop would be its worst in four years. LPL shares the day of the conference reached $45.06. Two days later, LPL’s former owner, the private equity firm TPG Capital, sold 4.3 million shares of the company’s common stock in the early completion of an accelerated share repurchase program. On February 11, 2016, LPL announced its fourth quarter and full year 2015 financial results that revealed a 35% decline in gross profits, among other bad news. As a result, the price of LPL common stock fell nearly 35% to close at $16.50 per share. Had LPL not repurchased TPG's stock prior to its fourth quarter announcement, LPL would have been able to purchase the same amount of shares from TPG for $115 million less.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/lpl-financial-holdings-inc-jan-2018
LPL Financial Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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