FXCM Inc Faces Investor Investigation Over Possible Securities Laws Violations

If you purchased shares of FXCM Inc (NYSE:FXCM), including those who purchased or acquired FXCM’s common stock pursuant to its initial public offering on or about December 1, 2010 or since the IPO, and/or if you have any information relating the investigation, you have certain options and you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
FXCM
Affected Securities: 
NYSE: FXCM

After FXCM Inc was sued by a customer alleging violation of the Racketeer Influenced and Corrupt Organizations Act an investigation on behalf of investors in FXCM Inc (NYSE:FXCM) over possible violations of the federal securities laws by FXCM Inc. and certain of its directors and officers was announced.

The investigation by a law firm concerns on allegations that certain statements issued by FXCM Inc (Public, NYSE:FXCM) regarding its business, operations and financial performance were materially false and misleading. In early December 2010, FXCM sold more than 15 million shares at the price of $14 per share in its IPO. Shares of FXCM Inc (NYSE: FXCM) then rose on December 3, 2010 to $15 and then decreased on Dec 20 to as low as $12.21 per FXCM share.

Then on February 10, 2011, FXCM Inc disclosed that it was sued in the United States District Court for the Southern District of New York by a customer alleging claims under Federal and New York State law with respect to trading through the company’s platforms
The plaintiff alleges that FXCM Inc has been engaged for years in a fraudulent scheme in violation of the Racketeer Influenced and Corrupt Organizations Act (“RICO”) that has “bilked thousands of customers out of hundreds of millions of dollars,” in part by using software designed “to interfere with customers’ trades.”

Equities research analyst William Katz at Citi Investment meanwhile cut earnings estimates for the Company for 2011 and 2012, and lowered the price target for the stock from $18 to $14. Katz wrote in a research note that the year-to-date data have raised questions about growth assumptions for the Company this year and next year, and “begin to suggest potentially greater maturity in the business than previously contemplated.”

After the announcements FXCM shares fell to under $12 and closed last Friday at $12.03 per share.