| Company: | NYFIX, Inc. |
| Ticker Symbol: | NASD: NYFXE |
| Class Period: | March 30, 2000 and March 30, 2004 |
| Court: | District, CT |
| Date Filed: | May-14-04 |
| Lead Plaintiff Deadline: | Jul-13-04 |
| Allegations: |
A Class Action lawsuit has commenced in the United States District Court for the District of Connecticut (04 CV 802) on behalf of all purchasers of securities of NYFIX, Inc. ("NYFIX" or the "Company") (Nasdaq:NYFXE) between March 30, 2000 and March 30, 2004, inclusive (the "Class Period").
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The Complaint names as defendants NYFIX, Inc., Peter Kilbinger Hansen, Richard A. Castillo, Mark R. Hahn, George O. Deehan, William J. Lynch and Carl E. Warden. The Complaint alleges that during the Class Period, the Defendants perpetrated a scheme to artificially inflate NYFIX's stock price by issuing a series of materially false and misleading financial statements and press releases which, among other things, overstated the value of NYFIX Millennium, L.L.C. ("Millennium"), a private company in which the Company held a substantial ownership interest and which represented a substantial portion of the Company's assets during the Class Period.
More specifically, the Company's Form 10-K's filed with the Securities and Exchange Commission ("SEC") for 1999, 2000, 2001 and 2002 and the press releases announcing the financial and business performance of the Company for the fiscal years 1999 - 2003, were materially false and misleading and omitted to state material information because the Company: (a) improperly accounted for its 1999 original investment in, and 2002 acquisition of an additional interest of, Millennium; (b) failed to properly allocate losses incurred by Millennium to the Company; (c) overstated the value of Millennium on the Company's balance sheet; and (d) failed to properly write down Goodwill from the 2002 acquisition of Millennium. The Company failed to properly record $20.1 million in accumulated losses for the years ended December 31, 1999, 2000, and 2001, painting a much different financial picture of the Company than had been disclosed. Defendants perpetrated this scheme in order to enable the Company to raise over $60 million in a public common stock offering and to use the Company's artificially inflated stock (along with the cash raised in the offering) to purchase other companies.
On March 30, 2004, NYFIX issued a press release which stated, "Based on its discussions with the SEC staff, the Company will restate its audited results for the years ended December 31, 1999 through 2002 to change the manner in which it accounted for the 1999 original investment in, and 2002 acquisition of an additional interest of, NYFIX Millennium." The market reacted negatively to this news. On the first day of trading after the announcement, the Company's stock traded on very heavy volume and closed down over 7% at $5.16 per share.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The Complaint names as defendants NYFIX, Inc., Peter Kilbinger Hansen, Richard A. Castillo, Mark R. Hahn, George O. Deehan, William J. Lynch and Carl E. Warden. The Complaint alleges that during the Class Period, the Defendants perpetrated a scheme to artificially inflate NYFIX's stock price by issuing a series of materially false and misleading financial statements and press releases which, among other things, overstated the value of NYFIX Millennium, L.L.C. ("Millennium"), a private company in which the Company held a substantial ownership interest and which represented a substantial portion of the Company's assets during the Class Period.
More specifically, the Company's Form 10-K's filed with the Securities and Exchange Commission ("SEC") for 1999, 2000, 2001 and 2002 and the press releases announcing the financial and business performance of the Company for the fiscal years 1999 - 2003, were materially false and misleading and omitted to state material information because the Company: (a) improperly accounted for its 1999 original investment in, and 2002 acquisition of an additional interest of, Millennium; (b) failed to properly allocate losses incurred by Millennium to the Company; (c) overstated the value of Millennium on the Company's balance sheet; and (d) failed to properly write down Goodwill from the 2002 acquisition of Millennium. The Company failed to properly record $20.1 million in accumulated losses for the years ended December 31, 1999, 2000, and 2001, painting a much different financial picture of the Company than had been disclosed. Defendants perpetrated this scheme in order to enable the Company to raise over $60 million in a public common stock offering and to use the Company's artificially inflated stock (along with the cash raised in the offering) to purchase other companies.
On March 30, 2004, NYFIX issued a press release which stated, "Based on its discussions with the SEC staff, the Company will restate its audited results for the years ended December 31, 1999 through 2002 to change the manner in which it accounted for the 1999 original investment in, and 2002 acquisition of an additional interest of, NYFIX Millennium." The market reacted negatively to this news. On the first day of trading after the announcement, the Company's stock traded on very heavy volume and closed down over 7% at $5.16 per share.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.
If your injustice does not match the complaint described above, please use this form to register your complaint. Thank you.
