Bernstein Liebhard LLP Announces That It Is Investigating Claims Against Investment Technology Group Inc.
August 4, 2015
Bernstein Liebhard LLP today announced that it is investigating possible claims against Investment Technology Group, Inc. (“ITG” or the “Company”) (NYSE:ITG). The investigation concerns whether ITG and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On July 29, 2015, after the market closed, ITG revealed that it was in settlement discussions with the SEC concerning how it operated a private stock trading venue commonly known as a “dark pool.” Specifically, the SEC’s investigation focused on the lack of disclosure by the Company to its clients that it was trading against client orders within its dark pool. Based on the terms of the potential settlement, ITG would pay an aggregate amount of $20.3 million representing a civil penalty of $18 million, disgorgement of approximately $2.1 million in trading revenues and prejudgment interest of approximately $250,000.
In a letter to the Company’s clients, ITG CEO Bob Gasser revealed, “In hindsight, I recognize that our client disclosures about the pilot were insufficient.”
On this news, ITG shares fell $5.64 per share or 23.5%, to close at $18.36 per share on July 30, 2015.
On August 3, 2015, the Company announced that it had removed Bob Gasser as CEO and appointed Jarret Lilien, a member of the ITG board, as interim CEO while the Company considers its options for a permanent replacement.
If you lost money in ITG, or are interested in discussing your rights as an ITG shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or firstname.lastname@example.org.
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.