Nicholas Financial receives class action lawsuit

Shareholders of a financial company recently had a law firm file a securities class action lawsuit on their behalf after the organization agreed to be purchased.

Law office Faruqi and Faruqi, LLP, filed the lawsuit against Nicholas Financial, Inc., in the U.S. District Court for the Middle District of Florida. This was due to the company's agreement to be acquired by Prospect Capital, Inc. The class period includes anyone who purchased stock in Nicholas Financial before Dec. 19, 2013.

The company agreed with Prospect Capital for the latter to purchase all outstanding interest in Nicholas Financial on Dec. 18, 2013. This deal was worth approximately $326 million, and shareholders will earn the number of shares dividing $16 from the volume-weighted average price of Prospect Capital's stock for the 20 days before the purchase date.

It is possible to become lead plaintiff in the case, though any party interested in doing so needs to speak with the court by April 11, 2014. This position is open to anyone in the class, though it is not required to take part in a payout, if one occurs.

For those who want to learn more about the process, it is possible to speak with the law office to learn more. The best person to contact is Juan Monteverde, and he can be reached by telephone or email. Shareholders can also visit the law firm's website to read more about the lawsuit.

Second lawsuit announced
Another law firm recently decided to file a class action claim against Nicholas Financial on behalf of shareholders for many of the same reasons.

Law office Robbins Geller Rudman and Dowd, LLP, explained that it filed the litigation in the same district court for the same class period. The lawsuit alleges that the Nicholas Financial board of directors violated the Securities Exchange Act of 1934, specifically sections 14(a) and 20(a), due to the pending transaction. Shareholders do not know the actual value they will earn in the deal due to the registration statement not providing enough information.

It is also possible for shareholders to speak with this law firm to learn more about the case.  This can include information regarding rights, interests or the claim itself. Darren Robbins is available to field questions, and he can be reached by email or telephone.