Robbins Arroyo LLP: Pearson plc (PSO) Misled Shareholders According to a Recently Filed Class Action
Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed against Pearson plc (NYSE: PSO) in the U.S. District Court for
the Southern District of New York. The complaint is brought on behalf of all purchasers of Pearson American Depositary Receipts
between January 21, 2016 and January 17, 2017, for alleged violations of the Securities Exchange Act of 1934 by Pearson's officers
and directors. Pearson provides educational materials and learning technologies for teachers and students worldwide.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/pearson-plc
Pearson Accused of Making Overly Optimistic Projections
According to the complaint, in a series of filings with the U.S. Securities and Exchange Commission, Pearson predicted
optimistic financial projections for the company, stating that it expected adjusted operating profit to be at or above £800 million
in 2018. In order to reach this goal, the company was relying on making market share gains in North American Higher Education
subjects where it was launching its "next generation" courseware. Pearson further stated that education is a sector with large
growth opportunities for the company, and that due to tight cost management, the company was on track to deliver its financial
guidance. However, the complaint alleges that Pearson officials made overly optimistic projections for 2017 and 2018 regarding its
U.S. education business when, in reality, students were not likely to purchase Pearson's products when more affordable alternatives
were available, resulting in unsold products.
On January 18, 2017, Pearson issued a trading statement on Form 6-K for the month of January 2017 announcing that the company
was not going to meet its 2018 projections. The company cited "continued challenges and uncertainty in the North American higher
education courseware market." In particular, Pearson revealed that its net revenues fell 30% during the final quarter resulting in
an unprecedented 18% decline for the full year, driven in part by lower enrollment and an accelerated impact from rental in the
secondary market. Further, the company shared that it was beginning 2017 with a base level of underlying profitability around £180
million lower than it had expected in early 2016. On this news, Pearson's stock price fell by approximately 29% to close at $7.13
per share on January 18, 2017.
Pearson Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion
of value for themselves and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.
Robbins Arroyo LLP
Darnell R. Donahue
(619) 525-3990 or Toll Free (800) 350-6003
DDonahue@robbinsarroyo.com
www.robbinsarroyo.com
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