|Class Period:||Jun-11-13 to Jan-20-15|
|Lead Plaintiff Deadline:||Aug-29-15|
|Court:||Southern District of New York|
FXCM acts as an agent between retail customers and a collection of global banks and financial institutions by making foreign currency markets for customers trading in foreign exchange spot markets.
According to the Complaint, during the Class Period, FXCM and certain of its executive officers issued a series of materially false and/or misleading statements regarding the Company's business operations and the strength of its financial prospects, while concealing significant weaknesses concerning its core business. The Complaint alleges that Defendants' Class Period statements were materially false and/or misleading when made because they misleadingly omitted, among other things: (1) that the Company's agency model did not insulate FXCM's customers or the Company itself from financial risk; (2) the true potential risk to the Company posed by market volatility; (3) that the Company did not maintain sufficient regulatory capital reserves; and (4) that Defendants' positive statements about the Company's business, operations, and growth lacked a reasonable basis.
On January 16, 2015, FXCM announced that it had been extended a $300 million loan by Leucadia National Corp. in order to stave off a regulatory default and possible bankruptcy. The terms of the loan were described as "highly punitive" and wiped out nearly all shareholder value in FXCM. Trading of the Company's stock was suspended until January 20, 2015. When the Company's stock resumed trading, it declined nearly 90% in value, from a pre-halt closing price of $12.63 per share on January 16, 2015 to a closing price of $1.60 per share on January 20, 2015.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.