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Investment Technology (ITG) Securities Fraud Class Action Lawsuit

On August 5, 2015, a class action lawsuit was filed against Investment Technology Group, Inc., on behalf of all persons and entities, other than the defendants, that purchased the company’s securities between February 28, 2011 and July 29, 2015. The suit alleges that Investment Technology Group made false and/or misleading statements to investors throughout the class period, resulting in significant losses and damages to these class plaintiffs.

 

Investment Technology Group, Inc. is an international independent execution and research broker, offering its clients trade execution services and solutions for portfolio management, investment research, pre-trade analytics, and post-trade analytics and processing. It’s common stock trades under the symbol ITG.

 

Procedural Status. The lawsuit was filed on August 5, 2015 and is captioned Rajesh Shah v. Investment Technology Group, Inc., Robert C. Gasser and Steven R. Vigliotti. It was filed in the United States District Court Central District of California. Its civil docket number is 2:15-cv-05921. The lead plaintiff deadline is October 5, 2015.

 

The class action complaint includes several allegations. Specifically, that Investment Technology made false and/or misleading statements, and failed to disclose information to its investors. For example, AlterNet Securities, one of Investment Technology’s subsidiaries, operated a proprietary trading operation from 2010 through mid-2011 inside of the company’s POSIT dark pool, a private stock trading platform, against some of its broker clients. This proprietary trading platform used information from customer stock orders within the company’s dark pool, along with information from the company’s clients that used the firm’s algorithms to execute trades on other platforms, which should not have been available. Consequently, Investment Technology’s public statements were materially false and misleading at all relevant times.

 

On August 4, 2015, the company announced that it was setting aside $20.3 million for a probable settlement with the SEC. After this announcement, its shares fell over 23% from its previous closing price.

Article Type: Lawsuit
Topic: Investments

Most Recent Case Event

Shareholder Sues ITG For Securities Fraud

August 5, 2015

After ITG announced that it operated a then undisclosed trading platform that apparently made trade decisions based upon pending customer orders, the stock lost significant value.  One shareholder has brought a suit to attempt to recover those losses.  Here is the complaint.

investment_technology_group_complaint.pdf

Case Event History

Shareholder Sues ITG For Securities Fraud

August 5, 2015

After ITG announced that it operated a then undisclosed trading platform that apparently made trade decisions based upon pending customer orders, the stock lost significant value.  One shareholder has brought a suit to attempt to recover those losses.  Here is the complaint.

investment_technology_group_complaint.pdf
Tags: Failure To Disclose Operational Problems, Securities Frauds, Stock Losses, Your Money