CEO Mark Casady Atones to LPL Financial Shareholders for Compliance Errors as LPL Net Income Falls

stockbroker fraud attorneyLPL’s CEO Mark Cassady recently apologized to shareholders for his delay in rectifying compliance issues which have made the nation’s largest independent broker-dealer cough up millions of dollars in in fines, restitution payments and settlements with regulators.

 “It’s been a two-year journey to reduce complexity by increasing automation and controls,” Mr. Casady said on an earnings conference call. “I apologize to all shareholders for the bumpiness of the journey.”

LPL Financial Holdings Inc., the parent company of the broker-dealer, reportedly stated last week that it anticipated the broker-dealer to face up to $23 million in charges in order to resolve certain matters such as fines and financial restitution.  That is a full $18 million above what was previously expected.

LPL Financial, the largest independent brokerage firm with almost 14,000 brokers that use its products and services, finally reported its actual quarterly profit, which plummeted 11.6 percent from a year earlier. As a result, investors seemingly lost confidence, and shares tumbled after the brokerage firm reported actual results.

In an attempt to give a boost to investors, LPL Financial dished out $50 million in October to repurchase 1.1 million shares at an average price of $43.99 after having already paid $25 million on buybacks in the third quarter at an average of $47.06, according to reports.

Investment Rights Lawyers Investigating

The Peiffer Rosca Wolf investment rights lawyers often represent investors who lose money as a result of investment fraud. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of investment fraud or misconduct may contact the investment rights lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1180 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


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