OneMain Holdings, Inc. (OMF) Officers and Directors Mislead Shareholders According to Class Action
OneMain was created as a result of the acquisition of OneMain Financial Holdings, LLC by Springleaf Holdings, LLC. The company represented that synergies between the two companies would result in a combined company that would be significantly more profitable than either company on its own. The complaint against OneMain Holding, Inc. (NYSE: OMF) for alleged violations of the Securities and Exchange Act of 1934 by OneMain officers and directors between February 25, 2016 and November 7, 2016, alleges that these statements were materially false or misleading because the integration efforts were “wreaking havoc” on the company. Specifically, defendants made materially false and misleading statements concerning: (i) the post-acquisition integration efforts at OneMain Financial branches; (ii) the achievability of the company’s 2016 and 2017 earnings guidance; and (iii) uncertainties and material risks associated with OneMain that were known to defendants at the time the statements were made.
During a conference call with investors on November 7, 2016, OneMain 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%. On this news, OneMain’s share price declined by $10.67 per share, or approximately 38%, to close at $16.90 per share on November 8, 2016.
OneMain Holdings, Inc. (OMF) Shareholders Have Legal Options
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