WILMINGTON, Del., March 17, 2017 (GLOBE NEWSWIRE) -- Andrews & Springer LLC, a boutique securities class action law firm focused on representing shareholders nationwide, announced today that a securities fraud class action lawsuit has been filed by another law firm in the U.S. District Court, Southern District of Indiana, Case No. 3:17-cv-7, on behalf of investors of OneMain Holdings, Inc. (NYSE:OMF) (“OneMain Holdings” or the “Company”) that purchased OneMain Holdings securities between March 3, 2015 and November 7, 2016.
A copy of the complaint is available from Andrews & Springer LLC. If you currently own shares of OneMain Holdings and want to receive additional information or would like to join the class action and protect your investment free of charge, please visit our website or contact Craig J. Springer, Esq. at cspringer@andrewsspringer.com, or call toll free at 1-800-423-6013. You may also follow us on LinkedIn – https://www.linkedin.com/company/andrews-&-springer-llc, Twitter – www.twitter.com/AndrewsSpringer or Facebook - www.facebook.com/AndrewsSpringer for future updates.
NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER AND DO NOTHING AT THIS POINT. YOU MAY RETAIN COUNSEL OF YOUR CHOICE.
OneMain Holdings was formerly known as Springleaf Holdings, Inc. (“Springleaf”) until Springleaf purchased OneMain Financial Holdings, LLC (“OneMain Financial”), and the combined company was named OneMain Holdings.
On March 3, 2015, Springleaf entered into a definitive merger agreement to acquire OneMain Financial from CitiFinancial Credit Company, a wholly-owned subsidiary of Citigroup. In a press release on March 12, 2015, Jay N. Levine, President and Chief Executive Officer of Springleaf at that time, touted OneMain Financial's position as a leading national provider of personal loans, stating, “[w]e look forward to … building on the enormous potential of the combined company.” Subsequently, the company predicted an optimistic financial outlook, stating that it expected to generate core net income of $830 million to $900 million in 2017. Levine further stated, “As we continue to execute on the integration of the two companies, we are further strengthening our foundation for continued growth and strong returns.” However, the complaint alleges that OneMain Holdings officials omitted material information regarding the projected net income to be achieved by the Company following the merger.
On November 7, 2016, during a conference call with investors, OneMain Holdings disclosed that it 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, the Company revealed that it would lower its guidance for its consumer insurance adjusted earnings per share from $4.20-$4.70 per share to a range of $3.60-$3.70 per share for 2016 and from $5.60-$6.10 per share to $3.75-$4.00 per share for 2017. Further, the company stated that it would lower guidance for receivables growth in 2016 from 10-15% to 5% and in 2017 from 10-15% to 5-10%.
As a result of this news, OneMain Holdings’ share price dropped by $10.67 per share, or approximately 38%, to close at $16.90 per share on November 8, 2016, causing shareholders to incur millions in losses.
A OneMain Holdings shareholder represented by another law firm has filed a class action complaint against OneMain Holdings for federal securities fraud. The complaint was filed in the United States District Court, Southern District of Indiana, Case No. 3:17-cv-7.
If you wish to serve as lead plaintiff, you must move the Court no later than March 20, 2017. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Craig J. Springer, Esq. at cspringer@andrewsspringer.com, or call toll free at 1-800-423-6013. You may also follow us on LinkedIn – www.linkedin.com/company/andrews-&-springer-llc, Twitter – www.twitter.com/AndrewsSpringer or Facebook - www.facebook.com/AndrewsSpringer for future updates.
Andrews & Springer is a boutique securities class action law firm representing shareholders nationwide who are victims of securities fraud, breaches of fiduciary duty or corporate misconduct. Having formerly defended some of the largest financial institutions in the world, our founding members use their valuable knowledge, experience, and superior skill for the sole purpose of achieving positive results for investors. These traits are the hallmarks of our innovative approach to each case our Firm decides to prosecute. For more information please visit our website at www.andrewsspringer.com. This notice may constitute Attorney Advertising.