Refco Capital Markets, Ltd.

A securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all brokerage customers of Refco Capital Markets, Ltd. ("RCM") who, at any time from October 17, 2000 to October 17, 2005, entrusted securities to RCM and/or Refco Securities, LLC, directly or indirectly, as custodian and broker for safe-keeping, and continued to hold positions with RCM on October 17, 2005 (the "Class Period") or thereafter.

The action charges Refco, fourteen of Refco's senior officers and directors, Refco's controlling shareholders, Refco's auditor, and nineteen financial institutions that underwrote Refco's common stock and bond offerings with violations of Sections10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder.

The gravamen of the claim is that during the Class Period Refco engaged in a practice of surreptitiously selling securities being held by RCM in custody for plaintiff and the class with the undisclosed intent to misappropriate the proceeds. Pursuant to federal securities laws and regulations, Refco Securities, LLC was required to maintain all of the customer securities held in RCM customer accounts and had a fiduciary relationship with each customer. Plaintiff's suit alleges that defendants essentially engaged in a ponzi scheme pursuant to which approximately $2.25 billion worth of the proceeds of the sales of plaintiff's securities (or the securities themselves) were transferred to other Refco affiliates -- through improper and undisclosed inter-company "lending" transactions -- in order to offset losses which were being incurred by Refco's separate subsidiaries. These "loans" were fraudulently omitted from Refco Group's consolidated financial statements and other disclosures during the Class Period.

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.

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