Waddell & Reed Financial’s net income plunged in the third quarter due to losses from the sale of its Legend group of subsidiaries to First Allied Holdings.

The Overland Park, Kan.-based firm reported earnings of $8.5 million, or 10 cents per diluted share, in the third quarter ended Sept. 30. This reflects a 391% decrease from $41.7 million, or 48 cents per diluted share, in the second quarter, and 368% decrease from $39.8 million, or 46 cents per diluted share, during the year-prior quarter.

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