Bernstein Liebhard LLP Announces That A Class Action Has Been Filed Against FXCM, Inc.
July 1, 2015
Bernstein Liebhard LLP today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of shareholders (the “Class”) who purchased shares of FXCM, Inc. (“FXCM” or the “Company”) (NYSE: FXCM) common stock between June 11, 2013 and January 20, 2015 (the “Class Period”).
FXCM provides online foreign exchange (“FX”) trading and related services to retail and institutional customers worldwide. The Company 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.
Plaintiffs seek to recover damages on behalf of all Class members who invested in FXCM common stock during the Class Period. If you invested in FXCM common stock as described above, and lost money on the transactions, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than July 7, 2015.
A “lead plaintiff” is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs’ firms in the country.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Southern District of New York.