The lawsuits are starting to pile up for LPL Financial (LPLA) in the wake of a sharp drop-off in its stock price.
On Thursday, several attorneys in New York filed a class-action suit on behalf of shareholders. This came one day after a pension fund in Michigan took action in a Southern California court against the independent broker-dealer, alleging that it misled investors in order to boost its stock price while executing a $250 million share buyback plan that benefited a key private equity investor.
Both suits seek to recover damages for shareholders of record between Dec. 8, 2015, and Feb. 11, 2016.
Attorneys have moved to file at least five class-action lawsuits across the country as of Thursday, and several attorneys also state that they are investigating the company and its executives for possible securities fraud.
LPL declined to comment, noting that it does not issues statements on pending litigation. It stock traded at $24.10 on Thursday, off nearly 50% from its 52-week high of $48.18.
Case History
The case in Michigan, brought to the court on behalf of the Charter Township of Clinton Police and Fire Retirement System on Wednesday, claims LPL CEO Mark Casady and CFO Matthew Audette were involved in a "fraudulent scheme to allow" TPG Capital to sell LPL shares at an "artificially inflated price."
