| Company: | Refco, Inc. |
| Ticker Symbol: | NYSE: RFX |
| Class Period: | August 11, 2005 to October 10, 2005 |
| Date Filed: | Oct-12-05 |
| Lead Plaintiff Deadline: | Dec-10-05 |
| Court: | Southern District, NY |
| Allegations: |
A securities class action has been filed in the United States District Court for the Southern District of New York against Refco, Inc. ("Refco") (NYSE: RFX) and certain of its officers and directors. Refco securities purchasers between August 11, 2005 and October 10, 2005, inclusive (the "Class Period") are putative class members.
Refco provides execution and clearing services for exchange-traded derivatives, and brokerage services in the fixed income and foreign exchange markets in the United States, Bermuda and the United Kingdom. Refco went public via an initial public offering in August 2005.
The complaint alleges that during the Class Period, Refco and certain of its officers and directors violated provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, causing investors to purchase stock pursuant to registration statements containing materially false and misleading statements. Specifically, the complaint alleges that during the Class Period, defendants knew and concealed (a) deficient and defective internal operational controls in existence at the Company for a period of several years before the commencement of the Company's IPO and (b) that the Company's deficient and defective internal operational controls concealed the true picture of the Company's financial progress and business prospects, among other allegations.
According to the complaint, the truth began to be revealed on October 10, 2005, when the Company delivered shocking and devastating revelations of fraud, warning investors that defendant Phillip R. Bennett, CEO, had been ordered to take a leave of absence after discovering it was owed $430 million by an entity controlled by Bennett. Moreover, the Company determined that prior financial statements for the fiscal years ending 2002 through 2005 and for May 2005 should not be relied on. In response to these announcements, the price of the Company's stock dramatically declined. Today, Refco's stock price closed at $13.85, or 51.5% lower than last Friday's close prior to the announcements.
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.
At LawyersandSettlements.com, it is our goal to keep you informed about important legal cases and settlements. We are dedicated to helping you resolve your legal complaints.
Refco provides execution and clearing services for exchange-traded derivatives, and brokerage services in the fixed income and foreign exchange markets in the United States, Bermuda and the United Kingdom. Refco went public via an initial public offering in August 2005.
The complaint alleges that during the Class Period, Refco and certain of its officers and directors violated provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, causing investors to purchase stock pursuant to registration statements containing materially false and misleading statements. Specifically, the complaint alleges that during the Class Period, defendants knew and concealed (a) deficient and defective internal operational controls in existence at the Company for a period of several years before the commencement of the Company's IPO and (b) that the Company's deficient and defective internal operational controls concealed the true picture of the Company's financial progress and business prospects, among other allegations.
According to the complaint, the truth began to be revealed on October 10, 2005, when the Company delivered shocking and devastating revelations of fraud, warning investors that defendant Phillip R. Bennett, CEO, had been ordered to take a leave of absence after discovering it was owed $430 million by an entity controlled by Bennett. Moreover, the Company determined that prior financial statements for the fiscal years ending 2002 through 2005 and for May 2005 should not be relied on. In response to these announcements, the price of the Company's stock dramatically declined. Today, Refco's stock price closed at $13.85, or 51.5% lower than last Friday's close prior to the announcements.
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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