Penson Worldwide Fraud Lawsuit
Penson Worldwide (NASDAQ: PNSN) appears to have concealed from shareholders bad investments resulting in massive losses.
Penson specializes in processing trades in securities and derivatives contracts for broker-dealers. Penson may have withheld significant information about the financial risks of its business to the detriment of stockholders. We are interested in speaking to investors with losses in PNSN who would like to pursue claims.
We are investigating specifically:
Penson stated that it had $97 million in receivables when in fact, $43 million of these were actually backed by an insolvent race track project in Texas which Penson management knew or should have known represented lost funds. Thus Penson's stated assets were vastly overstated and should have been counted as nearly worthless by the end of 2010. Because management failed to report this PNRN's reported income and earnings were greatly overstated and the financial statements made to investors were improper. Call Our lawyers to discuss your rights.
Timeline of Penson Disaster:
May 9, 2011. Penson disclosed Receivables of about $97 million, $43 million of which were securities issued by a failed horse track project.
May 9 and May 11, 2011. PNSN stock declines from $5.45 per share to close at $3.93 per share. A share value loss of 28%.
May 12, 2011. Penson director Thomas R. Johnson resigns citing: "Mr. Johnson's position as chief executive officer of Call Now, Inc a holder of a portion of the Retama related collateral, both Mr. Johnson and the Company felt it appropriate for him to resign his position at this time."
Penson shares continue to drop another 21%, to close at $3.12.
August 4, 2011. Penson states: "the Company recorded a non-cash write down of $43.0 million, equal to $26.7 million or ($0.94) per share net of tax, against $96.6 million of non accrual receivables. The write down was recorded in conjunction with Penson's initiation of foreclosure proceedings on the majority of the collateral underlying these receivables, including, but not solely related to, certain assets associated with the Retama Development Corporation, and shares of Penson Worldwide stock."
August 5, 2011. Penson shares fall another $0.49 per share (about 19%) ending at $2.12 per share.
If you are a shareholder of Penson please call Attorney Bill Kyros at 1-800-934-2921 to discuss your rights.
Kyros Law is a Boston-based law firm with significant experience representing investors in shareholder class actions, shareholder derivative actions, and securities fraud class actions. For info about our law firm please our Kyros Law web site.
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