FXCM Inc (NYSE: FXCM) Investor Securities Class Action Lawsuit 05/08/2015

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Company Name(s): 
FXCM
Case Name: 
FXCM Shareholder Class Action Lawsuit 05/08/2015
Case Status: 
Case Dismissed
Affected Securities
NYSE: FXCM
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
05/08/2015
Class Period Begin: 
06/11/2013
Class Period End: 
01/20/2015
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
07/07/2015
Case Dismissed: 
08/13/2018
Summary: 

August 13, 2018 - The court granted defendants' motion to dismiss.

September 28, 2017 - Defendants filed a motion to dismiss.

August 25, 2017 - The lead plaintiff filed a second amended consolidated complaint on behalf of investors who purchased FXCM Inc (NYSE: FXCM) common shares between March 17, 2014 and January 20, 2015. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between March 17, 2014 and January 20, 2015.

August 17, 2017 - The U.S. Court of Appeals for the Second Circuit vacated the judgement of the district court and remanded the case.

November 3, 2016 - The lead plaintiff filed a notice of appeal.

October 7, 2016 - The court entered a judgement and closed the case.

July 7, 2015 - Lead plaintiff motions were filed.

May 8, 2015 - An investor in shares of FXCM Inc (NYSE: FXCM) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between June 11, 2013 and January 20, 2015.

According to the complaint the plaintiff alleges on behalf of purchasers of FXCM Inc (NYSE: FXCM) common shares between June 11, 2013 between January 20, 2015, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between June 11, 2013 and January 20, 2015 defendants made false and/or misleading statements that FXCM’s agency model did not insulate FXCM Inc from financial risk from its heavily leveraged clients, that FXCM Inc did not disclose the true potential risk posed by market volatility, that FXCM Inc did not maintain sufficient regulatory capital reserves, and that the Defendants’ positive statements about the Company’s business, operations, and growth lacked a reasonable basis.

FXCM Inc reported that its annual Total Revenue rose from $417.31 million in 2012 to $489.59 million in 2013 and that its Net Income increased from $8.96 million in 2012 to $14.83 million in 2013.

On Jan. 15, 2015, FXCM Inc (NYSE: FXCM) announced due to unprecedented volatility in EUR/CHF pair after the Swiss National Bank announcement in the morning of January 15, 2015, that clients experienced significant losses, generated negative equity balances owed to FXCM inc of approximately $225 million and that as a result of these debit balances, FXCM Inc may be in breach of some regulatory capital requirements.

On Janaury 16, 2015, Leucadia National Corporation (NYSE: LUK) and FXCM (NYSE: FXCM) announced that Leucadia would be providing $300 million in cash to FXCM and its subsidiaries (collectively "FXCM") that will permit FXCM to meet its regulatory-capital requirements and continue normal operations after January 15th's loss of $225 million due to the unprecedented actions of the Swiss National Bank.

On Jan. 19, 2015, FXCM Inc (NYSE: FXCM) announced further details on the agreement reached with Leucadia National Corporation ("Leucadia") that permitted FXCM to meet its regulatory capital requirements and continue normal operations after significant losses were incurred due to unprecedented actions by the Swiss National Bank.

Shares of FXCM Inc (NYSE: FXCM) declined from $17.18 per share on January 8, 2015 to as low as $1.28 per share on January 20, 2015.