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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:

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,,
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.

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