Kessler Topaz Meltzer & Check, LLP Announces a Securities Fraud Class Action Filed Against Virtu Financial, Inc. (VIRT)
News provided byKessler Topaz Meltzer & Check LLP
May 26, 2023, 1:26 PM ET
RADNOR, Pa., May 26, 2023 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed in the United States District Court for the Eastern District of New York against Virtu Financial, Inc. (“Virtu”) (NASDAQ:VIRT). The action charges Virtu with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company’s business, operations, and prospects. As a result of Virtu’s materially misleading statements and omissions to the public, Virtu’s investors have suffered significant losses.
CLICK HERE TO SUBMIT YOUR VIRTU LOSSES. YOU CAN ALSO CLICK ON THE FOLLOWING LINK OR COPY AND PASTE IN YOUR BROWSER: https://www.ktmc.com/new-cases/virtu-financial-inc?utm_source=PR&utm_medium=link&utm_campaign=ticker&mktm=r
LEAD PLAINTIFF DEADLINE: JULY 18, 2023
CLASS PERIOD: MARCH 1, 2019 THROUGH APRIL 28, 2023
Kessler Topaz is one of the world’s foremost advocates in protecting the public against corporate fraud and other wrongdoing. Our securities fraud litigators are regularly recognized as leaders in the field individually and our firm is both feared and respected among the defense bar and the insurance bar. We are proud to have recovered billions of dollars for our clients and the classes of shareholders we represent.
VIRTU’S ALLEGED MISCONDUCT
Virtu is a financial services company whose product suite includes offerings in execution, liquidity sourcing, analytics and broker-neutral, and multi-dealer platforms in workflow technology. As part of its operations, Virtu claims to have established information access barriers, or separations between different departments or individuals designed to block the exchange of confidential information and prevent conflicts of interest.
Throughout the Class Period, however, Defendants made false and/or misleading statements and/or failed to disclose that the company maintained deficient policies and procedures with respect to its information access barriers, and that, as a result, Virtu had overstated the company’s operational and technological efficacy as well as its capacity to block the exchange of confidential information between departments or individuals within the company.
On February 17, 2023, after the market closed, Virtu published its full year 2022 financial results, and revealed that Virtu had been responding to requests for information from the SEC in connection with an investigation of Virtu’s information access barriers.
Following this news, Virtu’s stock price fell $0.32, or 1.6%, to close at $19.69 per share on February 21, 2023.
Then, on April 28, 2023, Virtu released its first quarter 2023 financial results, once again stating that it had been in contact with the SEC, and that it may receive a Wells Notice from the SEC which would be expected to allege violations of federal securities laws with respect to the company’s information barriers policies and procedures for a specified time period in and around January 2018 to April 2019 and related statements made by the company during such period.
On May 1, 2023, The Wall Street Journal published an article reporting that a Virtu spokesperson stated that the investigation was “primarily focused on an access controls weakness in one of [Virtu’s] internal back office systems containing post trade information that theoretically could allow certain system users access greater than what was intended by our policies.”
Following this news, Virtu’s stock price fell $1.13, or 5.7%, over two consecutive trading days to close at $18.77 per share on May 3, 2023.
WHAT CAN I DO?
Virtu investors may, no later than July 18, 2023, move the Court to serve as lead plaintiff for the class, through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Virtu investors who have suffered significant losses to contact the firm directly to acquire more information. The class action complaint against Virtu, captioned Hiebert v. Virtu Financial, Inc., et al and docketed under 23-cv-03770, is filed in the United States District Court for the Eastern District of New York before the Honorable Nicholas Garaufis.
CLICK HERE TO SIGN UP FOR THE CASE
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
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