FXCM last week announced that a purported class action lawsuit was filed in the United States District Court for the Southern District of New York against the company and certain of its officers and directors and three of the underwriters in the company's Initial Public Offering (IPO). The complaint alleges false or misleading statements in the IPO prospectus, and seeks unspecified damages on behalf of persons who purchased the company's Class A common stock.
The company stated that it strongly believes the case that was filed is completely without merit and that the company intends to vigorously defend itself against all of the allegations in the complaint.
Drew Niv, CEO of FXCM commented: It is a regrettable fact of public company life that even a temporary stock price decline often leads to class action litigation. FXCM will always defend itself against these types of meritless claims and I am confident this case will be dismissed.