Case Page

 

Case Status:    ONGOING    
On or around 09/16/2016 (Ongoing date of last review)

Filing Date: February 20, 2015

According to the press release filed on February 27, 2015, the Complaint alleges that since at least May 28, 2013, Virtus knew that its sales and marketing of the AlphaSector's past track record was based on false and misleading statements about its success against the S&P 500 index. Virtus's sales of its AlphaSector funds drove its increases in revenues and income, and caused substantial artificial appreciation in its stock price. On September 5, 2014, the Wall Street Journal first reported that the Securities and Exchange ("SEC") Commission was investigating F-Squared, a co-adviser responsible for Virtus's AlphaSector Funds, over alleged falsifications of its past track record. Following this disclosure, Virtus's stock fell by $37 per share, and lost more than 16 percent of its value within a few days.

On December 22, 2014, the SEC announced that it had formally charged F-Squared and its President for fraud and various violations of the Investment Advisors Act of 1940, and that it had reached a settlement with F-Squared regarding those charges. The SEC's announcement, although never mentioning Virtus by name, revealed further details and evidence of F-Squared's fraud which implicated Virtus.

On this news, shares in Virtus, which traded as high as $240.72 per share during the Class Period, closed at $169.70 per share on December 22, 2014.

On July 1, 2016, the Court issued an Order granting in part and denying in part Defendants' Motion to Dismiss.

COMPANY INFORMATION:

Sector: Financial
Industry: Investment Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: VRTS
Company Market: NASDAQ
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 #: 15-CV-01249
JUDGE: Hon. William H. Pauley III
DATE FILED: 02/20/2015
CLASS PERIOD START: 05/28/2013
CLASS PERIOD END: 12/22/2014
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Zamansky & Associates LLC
    50 Broadway - 32nd Floor, Zamansky & Associates LLC , NY 10004
    212.742.1414 212.742.1177 ·
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 15-CV-01249
JUDGE: Hon. William H. Pauley III
DATE FILED: 08/21/2015
CLASS PERIOD START: 01/25/2013
CLASS PERIOD END: 05/11/2015
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Litowitz Berger & Grossmann LLP (New York, NY)
    1285 Avenue of the Americas, 33rd Floor, Bernstein Litowitz Berger & Grossmann LLP (New York, NY), NY 10019
    212.554.1400 212.554.1444 · blbg@blbglaw.com
  2. Labaton Sucharow LLP
    140 Broadway, Labaton Sucharow LLP, NY 10005
    212.907.0700 212.818.0477 · info@labaton.com
No Document Title Filing Date