Investment Technology Group, Inc. investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, ITG is an independent execution and research broker in the United States, Canada, Europe, and the Asia Pacific regions. One of the company’s principal subsidiaries, AlterNet Securities, Inc. (“AlterNet”), is a U.S. broker-dealer registered with the SEC, FINRA, NASDAQ, EDGA, EDGX and 14 states.
The complaint alleges that throughout the Class Period the defendants issued materially false and misleading statements to investors and/or failed to disclose that: (1) ITG’s AlterNet subsidiary operated a proprietary trading operation in 2010 through mid-2011 inside of ITG’s POSIT dark pool, a private stock trading platform, against some of its broker clients; (2) the proprietary trading operation used information from customer stock orders within ITG’s dark pool, as well as information from ITG clients that used the firm’s algorithms to execute trades on other trading platforms, which should not have been available; and (3) as a result of the foregoing, the company’s public statements were materially false and misleading at all relevant times.
The Class Period starts on February 28, 2011, when ITG filed a Form 10-K for the fiscal year ended December 31, 2010 with the SEC, which provided the company’s year-end financial results and position and provided information regarding the effectiveness of its disclosure controls and procedures.
According to the complaint, on August 4, 2015, ITG issued a press release, announcing, among other things, that it is setting aside $20.3 million for a probable settlement with the SEC to resolve allegations that the company failed to disclose crossing against sell-side clients in POSIT and violations of ITG policy and procedures by a former employee.
Following this news, the company’s shares fell $5.46 per share or over 23% from its previous closing price to close at $18.36 per share on July 30, 2015.
If you are a member of the class described above, you may no later than October 5, 2015, move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706