Prospect SEC victory not a "ringing endorsement" says KBW

|About: Prospect Capital Corpora... (PSEC)|By:, SA News Editor

"It's on one hand a clear positive that they don't have to restate, but on the other hand it's not like a ringing endorsement of their accounting policies," says KBW's Greg Mason after Prospect Capital (PSEC +4.6%) won an appeal with the SEC and will not have to restate past earnings.

The company will, however, have to alter future reporting, and Mason - awaiting further guidance from management - expects lower GAAP operating earnings, but no impact on net income.

As for the investor lawsuits, they've lost about all of their oxygen. "It's just a bunch of ambulance chasers that were trying to get their name on the door in case something material happened," says Mason.

Previously: Prospect wins appeal with SEC; no restatement necessary