SAN DIEGO (Legal Newsline) - Investors are suing an independent broker-dealer and two of its chief officers, alleging they made false and misleading statements to the investing public.
Charter Township of Clinton Police and Fire Retirement System, individually and for all others similarly situated, filed a class action lawsuit March 22 in U.S. District Court for the Southern District of California against LPL Financial Holdings, Mark S. Casady, and Matthew J. Audette, alleging violation of federal securities laws.
The suit alleges between Dec. 8, 2015 and Feb. 11, 2016, the defendants falsely represented LPL's business, prospects and financial results. Specifically, the complaint states, the defendants stated LPL's earning stream was steady when, in fact, quarterly adjusted earnings and net income will be down almost 46 percent and 45 percent year over year, respectively.
The lawsuit states the defendants also represented, among other false and misleading statements, that LPL was in the midst of a recovery when, in fact, client assets had deteriorated and would decline by billions of dollars by quarter end.
On Feb. 11, LPL issued a news release announcing its fourth quarter and full year 2015 financial results, reporting results that fell well below analysts' estimates, the suit says. As a result, LPL common stock traded at artificially inflated prices during the class period but significantly fell on news of the defendants' false statements, the lawsuit states.
The plaintiff and others in the class seek a jury trial, damages and interest, equitable and injunctive relief, plus attorney fees and costs. They are represented by attorneys David C. Walton, Brian E. Cochran and Samuel H. Rudman of Robbins Geller Rudman & Dowd in San Diego and Melville, New York, and Michael J. Vanoverbeke of Vanoverbeke Michaud & Timmony in Detroit.
U.S. District Court for the Southern District of California Case number 3:16-CV-00685-BTM-BGS