OneMain Holdings Inc (NYSE:OMF) Investor Securities Class Action Lawsuit 01/17/2017
January 17, 2017 (Shareholders Foundation) - An investor in shares of OneMain Holdings Inc (NYSE:OMF) filed a lawsuit in the U.S. District Court for the District Court for the Southern District of Indiana over alleged violations of Federal Securities Laws by OneMain Holdings Inc in connection with certain allegedly false and misleading statements made between March 3, 2015 and November 7, 2016.
According to the complaint the plaintiff alleges on behalf of purchasers of OneMain Holdings Inc (NYSE:OMF) common shares between March 3, 2015 and November 7, 2016, that the defendants violated Federal Securities Laws. The plaintiff claims that between March 3, 2015 and November 7, 2016 the defendants caused OneMain Holdings Inc to issue materially misleading statements and/or omit material information concerning the Company's business, operations and prospects following Springleaf Holdings, Inc.'s merger with OneMain Financial Holdings, LLC in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. In particular, the plaintiff alleges that defendants caused OneMain Holdings Inc to issue materially misleading representations and/or omit material information regarding the projected net income to be achieved by the Company following, and in large part due to, the combination of OneMain Financial with Springleaf and the purported synergies achieved by the combined company.
OneMain Holdings Inc reported that its annual Total Revenue declined from over $2.81 billion in 2014 to over $2.19 billion in 2015 and that its Net Income of $504.64 million in 2014 declined to a Net loss of $242 million in 2015.
On November 7, 2016, OneMain Holdings Inc announced third quarter results and lowered its guidance for 2016 and 2017.
Shares of OneMain Holdings Inc (NYSE:OMF) declined on November 9, 2016 to as low as $16.03 per share.