Case: LPL Financial Holdings Inc. 
Court: Southern District of California
Class Period: 12/8/2015-2/11/2016
Lead Plaintiff Deadline: 5/21/2016
Contact: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

March 30, 2016 – Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) has been investigating LPL Financial Holdings Inc. (“LPL” or the “Company”) on behalf of investors who purchased LPL securities between December 8, 2015 and February 11, 2016.

On March 22, 2016, a securities class action complaint was filed against the Company that alleges that during the Class Period, defendants issued false and misleading statements and/or failed to disclose adverse information regarding LPL’s business and prospects, including that LPL's earnings and revenue were not steady, but were substantially declining; Company client assets were not in the midst of a recovery, but were actually deteriorating and would decline by billions of dollars; and LPL's gross profits would not decline "slightly," but significantly, and LPL would in fact experience its worst sequential gross profit decline in four years. 

As a result of defendants' false statements and/or omissions, it is alleged that LPL common stock traded at artificially inflated prices during the Class Period, reaching a high of $45.06 per share on December 8, 2015.

On December 10, 2015, the Company announced the early completion of its accelerated share repurchase program. TPG Capital sold 4.3 million shares of LPL common stock at $43.27 per share for approximately $187 million in proceeds.  TPG held a substantial ownership stake in the Company and influence over its affairs. LPL’s annual report on Form 10-K for fiscal 2014 stated that as a result of this ownership interest, TPG “will continue to be able to influence our decisions, regardless of whether or not other stockholders believe that the transaction is in their own best interests.”

Then on February 11, 2016, LPL announced its fourth quarter and full year 2015 financial results, including adjusted earnings per share of $0.37 per share, well below consensus analyst estimates of $0.51 per share. The Company also revealed disappointing revenues, primarily as a result of dramatically lower commission revenues and revenues from alternative investments, as well as higher-than-expected expenses for the quarter. As a result of this news, the price of LPL common stock dropped $8.76 per share to close at $16.50 per share on February 12, 2016, a one-day decline of nearly 35% and a decline of 63% from the stock's Class Period high.

If you purchased LPL common stock between December 8, 2015 and February 11, 2016 and would like to discuss our investigation, please contact us by e-mailing This e-mail address is being protected from spambots. You need JavaScript enabled to view it or by calling 800-290-1952.



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ttorneys: Laurence D. King, Jeffrey P. Campisi