It seems it's today's fashion to sue FXCM. Yet another investigation into FXCM was just announced. This is the fourth case in a month that FXCM is either being sued or is being investigated. One of the previous two investigations turned into a class action suit so I'm not really sure how suits/investigations over the same topic can co-exist, but it was announced anyway. In the meanwhile FXCM's stock price has almost fully recovered since being downgraded by Citi.
Abraham, Fruchter & Twersky, LLP has commenced an investigation on FXCM Inc. (“FXCM” or the “Company”) (NYSE:FXCM) for possible violations of federal securities laws on behalf of investors who purchased FXCM common stock pursuant and/or traceable to the Company’s December 1, 2010 Initial Public Offering (the “IPO”).
The firm is investigating whether the Company and certain of its officers and directors violated the federal securities laws by making inaccurate and misleading statements in the Company’s Registration Statement and Prospectus regarding the true nature of its business, operations, and prospects. More specifically, the firm is investigating whether the Company failed to disclose that FXCM’s growth and trading volume had slowed or weakened by the time of the IPO.
On February 8, 2011, a complaint was filed against FXCM alleging violations of the Racketeer Influenced and Corrupt Organizations Act (“RICO”). The complaint alleged, among other things, that FXCM falsely portrayed its Trading Platform as a fair, transparent, and true foreign currency market free from dealer intervention or manipulation; FXCM interfered with customer trades and traded against its own customers; and that FXCM lured thousands of customers to its trading platform by promoting a “demo account.” Other problems in FXCM’s trading platform included slow server command, false error messages, flash trades, arbitrary margin rules, Slippage , and slow fill or no fill commands, each designed with the purpose of transferring wealth away from the Company’s customers and to FXCM in an illegal and improper manner. As soon as investors discovered these problems, they stopped using FXCM’s trading platform.
On February 16, 2011 a Citigroup analyst downgraded shares of FXCM and reported declining trading customers. In a reaction to this news, shares of FXCM common stock dropped from a close of $13.70 per share on February 15, 2011 to close at $12.05 per share on extremely heavy trading volume.
If you purchased FXCM common stock pursuant and/or traceable to the Company’s December 1, 2010 IPO and you wish to serve as lead plaintiff in this action, you must move the Court no later than May 2, 2011. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.
If you would like to discuss this action or if you have any questions concerning this notice or your rights as a potential class member or lead plaintiff, you may contact: Jeffrey S. Abraham or Arthur J. Chen of Abraham, Fruchter & Twersky, LLP toll free at (800) 440-8986, or via e-mail at info@aftlaw.com or achen@aftlaw.com.
Abraham, Fruchter & Twersky, LLP has extensive experience in securities class action cases, and the firm has been ranked among the leading class action law firms in terms of recoveries achieved by a survey of class action law firms conducted by Institutional Shareholder Services. For more information on the lawsuit or the firm, please visit our website at https://www.aftlaw.com. Attorney Advertising. Prior results do not guarantee a similar outcome.
