Investment Technology Group, Inc. ("ITG" or the Company) is an American multinational company that offers electronic brokerage, securities trading platforms, analytics and investment research.
According to the law firm press release, the lawsuit alleges that throughout the Class Period, Defendants issued materially false and misleading statements to investors and/or failed to disclose that: (1) ITG’s AlterNet Securities, Inc. subsidiary operated a proprietary trading operation in 2010 through mid-2011 inside of ITG's POSIT dark pool, a private stock trading platform, against some of its broker clients; (2) the proprietary trading operation used information from customer stock orders within ITG's dark pool, as well as information from ITG clients that used the firm's algorithms to execute trades on other trading platforms, which should not have been available; and (3) as a result of the foregoing, the Company’s public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
On October 20, 2015, this case was transferred to the Southern District of New York.
This action was consolidated into lead case 1:15-cv-06369-JFK.
Plaintiffs filed a consolidated Complaint on December 14, 2015. On May 2, 2016, Defendants filed motions to dismiss the consolidated Complaint. On April 26, 2017, the Court issued an Order granting in part and denying in part Defendants' motions to dismiss.
On June 12, 2018, the Court issued an Order stating that it had been advised that a Settlement in this case has been reached and discontinuing the action without costs to any party, subject to reopening if Settlement is not consummated within 60 days of the date of this Order. On August 6, the parties entered into a Stipulation of Settlement. On October 30, the parties filed an amended Settlement Agreement. The Court granted preliminary approval of the Settlement on November 5. On February 21, 2019, the Court granted final approval of the Settlement and entered Final Judgment.
On June 23, 2020, the Court issued an Order approving distribution of the net Settlement fund.
