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Case Status:    DISMISSED    
On or around 07/01/2011 (Notice of voluntarily dismissal)

Filing Date: March 03, 2011

According to the complaint filed on March 2, 2011, this is a class action brought on behalf of the purchasers of FXCM Incorporated ("FXCM" or "Company") common stock pursuant to its December 2010 Initial Public Offering ("IPO" or "Offering") of 15,060,000 shares of common stock (with an overallotment option of 2,259,000 shares), priced at $14.00 per share. The total price to the public in connection with this offering was over $210.8 million ($226,705,710 with the overallotment option), with underwriters' discounts and commissions totaling over $15.76 million (with the overallotment option).

FXCM, its Board of Directors at the time of the IPO, and the Underwriters involved in the Offering (including Credit Suisse Securities (USA) LLC ("Credit Suisse"), Citigroup Global Markets Inc. ("Citi") and J.P. Morgan Securities LLC ("J.P. Morgan"), are each charged with including or allowing the inclusion of materially false and misleading statements in the Registration Statement and Prospectus (collectively, "Prospectus") issued in connection with the IPO, in direct violation of the Securities Act of 1933.

Specifically, Defendants each failed to conduct an adequate due diligence investigation into the Company prior to the IPO, and they also each failed to reveal, at the time the IPO closed that the Company was not proceeding according to plan, that FXCM's growth and trading volume had slowed or weakened by the time of the IPO, which would make it impossible for FXCM to achieve its projected results sponsored and/or endorsed by Defendants prior to and at the time of the IPO. Moreover, Defendants failed to disclose the true nature of its operations.

It was only on February 8, 2011 that the truth about FXCM began to be revealed. On that day, a complaint was filed in the Southern District of New York, alleging inter alia violations of the Racketeer Influenced and Corrupt Organizations Act ("RICO").

That complaint further detailed defects and programmed gaffes in the FXCM trading platform, including: slow server command, false error messages, flash trades, arbitrary margin rules, slippage, and slow fill or no fill commands, that were each designed to transfer wealth away from the Company's customers and to FXCM in an illegal and improper manner.

On this news, FXCM stock declined from a close of$13.70per share on February 15, 2011, to close at $12.05 per share the following day on extremely heavy volume of 2.48 million shares traded. Moreover, as the market continued to digest the adverse news about FXCM, shares of the Company continued to trade lower, reaching a low of $11.22 per share on February 23, 2010 - within only four trading days of the February 15 downgrade.

On July 1, 2011, the parties filed a notice of dismissal with prejudice. This dismissal was not the result of a settlement. The court approved the notice and formally closed the case on the same day.


Sector: Financial
Industry: Investment Services
Headquarters: United States


Ticker Symbol: FXCM
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data

"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. New York
DOCKET #: 11-CV-01461
JUDGE: Hon. Jed S. Rakoff
DATE FILED: 03/03/2011
CLASS PERIOD END: 02/08/2011
  1. Kahn Swick & Foti, LLC (Madisonville)
    206 Covington Street, Kahn Swick & Foti, LLC (Madisonville), LA 70447
    (504) 455-1400 (504) 455-1498 ·
  2. Kahn Swick & Foti, LLC Former New York)
    500 Fifth Avenue, Ste. 1810, Kahn Swick & Foti, LLC Former New York), NY 10110
    212.696.3730 504.455-1498 ·
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