According to the Complaint, GFI serves as a holding company for its subsidiaries, and provides brokerage and trade execution services, clearing services, market data and trading platforms, and other software products to institutional customers in markets for a range of fixed income, financial, equity, and commodity instruments.
On July 30, 2014, OFT announced that it had entered into an acquisition agreement with CME Group, Inc. ("CME").
The Complaint alleges that Defendants issued material misrepresentations and failed to disclose to investors like Plaintiff and the other members of the Class material facts indicating that the Company had received superior offers and inquiries from third party purchasers interested in acquiring GFI. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) prior to announcing the proposed acquisition with CME, GFI had received superior offers and/or inquiries from other interested third parties, including BGC; and (2) the CME offer did not optimize GFI's value for stockholders and did not represent a singular and unique opportunity to return value. Defendants withheld this material, non-public information from, and otherwise misled investors, so that Defendants could pursue and personally profit from a sweetheart deal with CME.
On February 20, 2015, the Court issued an Order appointing lead plaintiff and approving lead counsel. Lead Plaintiff filed an amended complaint on May 15. This was followed by the filing of a second amended complaint on July 8. Defendants filed a Motion to Dismiss on September 9. On February 9, 2016, the Court issued an Order denying Defendant's Motion to Dismiss.
On August 23, 2017, the Court issued an Order granting the motion to certify a class and appoint a class representative in this action. On February 9, 2018, the Court issued an Order granting class representative's unopposed motion to approve the form and manner of class notice.
On November 21, 2017, Defendants filed a Motion for Summary Judgment. On April 20, 2018, the Court issued an Order granting Defendants' Motion. Lead Plaintiff filed a Notice appealing the District Court's decision on May 18. Defendants filed a Notice cross-appealing the District Court's Opinion and Order of August 23, 2017. On October 4, 2019, the Court of Appeals affirmed the District Court's Order granting Summary Judgment.