FXCM Inc (NASDAQ: FXCM) Investor Securities Class Action Lawsuit 02/07/2017

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Company Name(s): 
FXCM
Case Name: 
FXCM Shareholder Class Action Lawsuit 02/07/2017
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: FXCM
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
02/07/2017
Class Period Begin: 
03/15/2012
Class Period End: 
02/06/2017
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
04/10/2017
Summary: 

April 6, 2018 - The lead plaintiff filed a second amended consolidated complaint.

March 1, 2018 - The court granted defendants' motion to dismiss without prejudice with leave to amend.

August 3, 2017 - Defendants filed a motion to dismiss.

July 21, 2017 - The lead plaintiffs filed a notice of voluntary dismissal of a certain defendant without prejudice.

June 19, 2017 - The lead plaintiffs filed an amended consolidated complaint.

May 3, 2017 - Lead plaintiffs and lead counsel were appointed and all cases were consolidated.

April 10, 2017 - Lead plaintiff motions were filed.

February 7, 2017 - An investor in shares of FXCM Inc (NASDAQ: FXCM) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by FXCM Inc in connection with certain allegedly false and misleading statements made between March 15, 2012 and February 6, 2017.

According to the complaint the plaintiff alleges on behalf of purchasers of FXCM Inc (NASDAQ: FXCM) common shares between March 15, 2012 and February 6, 2017, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between March 15, 2012 and February 6, 2017, the defendants made false and/or misleading statements and/or failed to disclose that between September 4, 2009 through at least 2014, FXCM Inc’s U.S. subsidiary engaged in false and misleading solicitations of its retail foreign exchange customers by concealing its relationship with its most important market maker and by misrepresenting that its “No Dealing Desk” platform had no conflicts of interest with its customers, that FXCM Inc’s U.S. subsidiary made false statements to the National Futures Association about its relationship with the market maker, and that as a result, defendants’ statements about FXCM Inc’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

FXCM Inc reported that its annual Total Revenue rose from $351.05 million in 2014 to $402.28 million in 2015 and that its Net Income of $17.15 million declined to a Net Loss of $553.93 million in 2015.

On February 6, 2017, the Commodities Futures Trading Commission ("CFTC") found that FXCM Inc was engaged in false and misleading solicitations of its retail foreign exchange customers. According to the CFTC, FXCM Inc covered up both its relationship with the Company's most crucial market maker, and that the fact that the Company's "No Dealing Desk" platform had conflicts of interest with FXCM Inc's customers.

Shares of FXCM Inc (NASDAQ: FXCM) declined from $7.25 per share on February 2, 2017 to as low as $2.75 per share on February 8, 2017.

On February 13, 2017, NASDAQ: FXCM shares closed at $2.90 per share.