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OneMain, through its subsidiaries, provides consumer finance and insurance products and services. The Company also provides personal loans secured by consumer household goods and other personal property. The Company was formerly known as Springleaf Holdings, Inc. (“Springleaf”), until Springleaf purchased OneMain Financial Holdings, LLC (“OneMain Financial”) from Citigroup on November 15, 2015, and the combined company was renamed OneMain Holdings, Inc.
The complaint alleges that during the Class Period defendants caused the Company to issue materially misleading statements and/or omit material information concerning the Company's business, operations and prospects following Springleaf’s merger with OneMain Financial in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. In particular, the complaint alleges that defendants caused the Company to issue materially misleading statements 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.
On November 8, 2016, the Company held a conference call for analysts and investors to discuss the Company’s financial results for the third quarter of 2016. During the conference call, defendant Jay Levine (“Levine”) stated that the Company was slashing guidance for full-year 2016 and 2017 with respect to the growth in its loan portfolios and its preferred measure of earnings. In particular, during the conference call, defendant Levine stated that the Company would: (i) lower its guidance for its consumer insurance adjusted EPS for 2016 from $4.20 to $4.70 per share to a range of $3.60 to $3.70 per share; (ii) lower its guidance for its consumer insurance adjusted EPS for 2017 from $5.60 to $6.10 per share to a range of $3.75 to $4.00 per share; (iii) lower guidance for receivables growth in 2016 from 10-15% to 5%; and (iv) lower guidance for receivables growth in 2017 from 10-15% to 5-10%.
Following this news, the Company’s share price plummeted by $10.67 per share, or approximately 38%, from $27.57 on November 7, 2016, to close at $16.90 per share on November 8, 2016.
If you are a member of the class described above, you may no later than March 20, 2017, move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will will adequatley represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@ktmc.com.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087 1-888-299-7704 (toll free) or 1-610-667-7706
Or by e-mail at info@ktmc.com