Investors Sue Prospect Capital Over Auto Loan Co. Merger

Law360, New York (February 4, 2014, 7:20 PM EST) -- Nicholas Financial Inc. shareholders filed a putative class action in Florida federal court Tuesday in a bid to stave off a merger with Prospect Capital Corp., alleging Prospect's investor guide for the deal is misleading and could lead to the destruction of the auto loan company's value.

According to the suit filed by Marvin Biver, Prospect agreed to merge with Nicholas in December and filed a document with the U.S. Securities and Exchange Commission on Jan. 14 in an effort to convince Nicholas shareholders to vote...
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