Business & Finance
Business and Finance
Business and Finance
Fri, September 16, 2011
Thu, September 15, 2011 Faruqi & Faruqi, LLP Announces Investigation Of Penson Worldwide, Inc.
NEW YORK--([ BUSINESS WIRE ])--Faruqi & Faruqi, LLP, a national law firm concentrating on investor rights, consumer rights and enforcement of federal antitrust laws, is investigating potential wrongdoing at Penson Worldwide, Inc. (aPensona or the aCompanya) (NASDAQ: PNSN). Faruqi & Faruqi, LLP seeks to determine whether Penson violated federal securities laws in connection with statements made to the Companya™s shareholders.
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The investigation focuses on whether certain individuals violated federal securities laws by, among other things, failing to disclose that: (1) approximately $43 million of the Companya™s approximately $96-97 million in receivables were unlikely to be collected as they were collateralized by illiquid securities; (2) the Companya™s assets should have been written down by the end of 2010 as they were materially overstated; and (3) the Company overstated its reported income and EBITDA.
On August 4, 2011, the Company announced that it had recorded a non-cash write down of $43 million, which amounted to a loss of $0.94 per share net of tax, against approximately $96.6 million of nonaccrual receivables. On this news, the share price of Penson common stock plummeted 19% from $2.61 to $2.12 on August 5, 2011.
Take Action
If you purchased Penson securities between February 10, 2011 and August 4, 2011, and you would like to discuss your legal rights, visit [ www.faruqilaw.com/PNSN ]. You can also contact us by calling Anthony Vozzolo or Richard W. Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [ avozzolo@faruqilaw.com ] or [ rgonnello@faruqilaw.com ]. Faruqi & Faruqi, LLP also encourages anyone with information regarding Pensona™s conduct during the period in question to contact the firm, including whistleblowers, former employees, shareholders and others.
About Faruqi & Faruqi, LLP
Faruqi & Faruqi, LLP is a national law firm, representing investors, consumers and companies in the prosecution of claims under state corporate and consumer laws and the federal securities and antitrust laws. The lawyers at Faruqi & Faruqi, LLP have demonstrated a clear commitment to championing the rights of shareholders and consumers nationwide.
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