NEW YORK, March 03, 2017 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Pearson plc (“Pearson” or the “Company”) (NYSE: PSO ) and certain of its officers, and is on behalf of a class consisting of all persons or entities who purchased Pearson American Depositary Receipts between January 21, 2016 and January 17, 2017, both dates inclusive (the “Class Period”). Such investors are advised to join this case by visiting the firm’s site: http://www.bgandg.com/pso .
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements in a series of filings with the U.S. Securities and Exchange Commission. Pearson forecasted positive financial projections, stating that it expected adjusted operating profit to be at or above £800 million in 2018. The company relied on making market share gains in North American Higher Education subjects where it was launching its "next generation" courseware to reach its goal. Pearson also said that education has great growth opportunities, and that due to tight budget, Pearson was ready to deliver its financial guidance. However, the complaint alleges that Pearson officials made overly enthusiastic projections for 2017 and 2018 regarding its U.S. education business when in truth, students were not likely to purchase Pearson's products when more affordable alternatives were available, which resulted in unsold products.
On January 18, 2017, Pearson filed its Form 6-K trading statement for the month of January 2017 and announced that the company would not be able to meet its 2018 forecasts. Pearson mentioned "continued challenges and uncertainty in the North American higher education courseware market." Specifically, Pearson divulged that its net revenues dropped 30% during the final quarter resulting in an unprecedented 18% drop for the full year. This decline was due mostly to lower enrollment and an accelerated impact from rental in the secondary market. Pearson also said that it was beginning 2017 with a base level of underlying profitability around £180 million lower than it had expected the previous year. Following this news, Pearson stock dropped roughly 29% to close at $7.13 per share on January 18, 2017.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm’s site: http://www.bgandg.com/pso or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Pearson you have until April 25, 2017 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact: Bronstein, Gewirtz & Grossman, LLC Peretz Bronstein or Yael Hurwitz 212-697-6484 | info@bgandg.com
