RADNOR, Pa., June 2, 2014 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action has been filed against Prospect Capital Corp. (Nasdaq: PSEC) ("Prospect Capital") on behalf of purchasers of the Company's common stock between September 14, 2009 and May 6, 2014 (the "Class Period").

Prospect Capital shareholders may, no later than July 28, 2014, move the Court for appointment as a lead plaintiff of the Class. Prospect Capital shareholders who wish to discuss this action and their options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) at (888) 299-7706.

For additional information about this lawsuit, or to request information about this action online, please visit http://www.ktmc.com/cases_details.php?id=213.

Prospect Capital is a financial services company that primarily lends to and invests in middle market privately-held companies. The Company invests in senior and subordinated debt and equity of companies in need of capital for acquisitions, divestitures, growth, development and recapitalization.

On May 6, 2014, Prospect Capital filed a Form 10-Q with the Securities and Exchange Commission ("SEC"). Therein, the Company disclosed that "the staff of the SEC has asserted that some of our wholly owned companies are investment companies for accounting purposes and are required to be consolidated by us," and that a restatement of Prospect Capital's financial statements was one possible "near-term resolution of the issue." On this news, shares of the Company's stock declined $0.54 per share, or over 5 percent, on unusually heavy trading volume.

The Complaint alleges that Prospect Capital and certain of its executive officers violated the Securities Exchange Act of 1934 during the Class Period by making a series of false and misleading statements to shareholders about the Company's revenues, losses and internal controls. Specifically, the Complaint alleges that, in violation of generally accepted accounting principles, Prospect Capital "fraudulently announced inflated revenues, earnings and earnings per share." Additionally, the Complaint alleges that Prospect Capital misrepresented "its financial results and propriety of its accounting and consolidation of subsidiaries," and that the Company maintained adequate internal controls.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP (Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) at (888) 299-7706 or (610) 667-7706, or via e-mail at info@ktmc.com. The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For additional information about this lawsuit, or to request information about this action, please visit http://www.ktmc.com/cases_details.php?id=213.

Members of the class may, no later than July 28, 2014, move the Court to serve as a lead plaintiff of the class. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. In order to be appointed as a 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. Your ability to share in any recovery is not, however, affected by the decision of whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com.

CONTACT:
Kessler Topaz Meltzer & Check, LLP
Darren J. Check, Esq.
D. Seamus Kaskela, Esq.
Adrienne O. Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(888) 299-7706 or (610) 667-7706
info@ktmc.com

SOURCE Kessler Topaz Meltzer & Check, LLP