FCStone Group, Inc. To Face Class Action Lawsuit In The United States District Court
A class action lawsuit has been filed against the FCStone Group, Inc. in the United States District Court for the Western District of Missouri. The Brualdi Law Firm P.C. has filed the lawsuit on behalf of all the purchasers of the common stock during the period between April 10, 2008 and July 9, 2008.
The Complaint alleges that the Company entered into an important hedge transaction which, for the first two quarters of fiscal 2008, generated net income to the Company of approximately $5 million. Most of this income was generated in the second quarter ending February 29, 2008. In a conference call on April 10, 2008, the Company concealed the true nature of the Hedge, by failing to reveal if there is a development of significant spread between the U.S.-based Fed Funds interest rate and the London Inter-Bank Rate, the Hedge would decline in national value. Based on what the market was told, the investor viewed the hedge as simply one to protect the Company from falling interest rates, and not one which was crucially dependent upon the spread between the Fed Funds Rate and LIBOR not widening.
Readers, If you wish to discuss this action or have any questions regarding your rights or interests about the matters, please contact Sue Lee at The Brualdi Law Firm, 29 Broadway, Suite 2400, New York, New York 10006, by telephone toll free at (877) 495-1187 or (212) 952-0602, by email to slee@brualdilawfirm.com or visit our website at http://www.brualdilawfirm.com/
Source: Marketwatch
Filed under Class Action, General Law, Shareholder Lawsuit
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