An investigation for investors in NYSE:FXCM shares over possible breaches of fiduciary duties by certain directors of FXCM Inc was announced.
Investors who are current long term investors in FXCM Inc (NYSE:FXCM) shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
The investigation by a law firm for current long term investors in FXCM Inc (NYSE:FXCM stocks follows a lawsuit filed against FXCM over alleged securities laws violations. The investigation on behalf of current long term investors in NYSE:FXCM stocks, concerns whether certain FXCM and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the Southern District of New York the plaintiff alleges that the defendants made false and/or misleading statements that FXCM’s agency model did not insulate FXCM Inc from financial risk from its heavily leveraged clients, that FXCM Inc did not disclose the true potential risk posed by market volatility, that FXCM Inc did not maintain sufficient regulatory capital reserves, and that the Defendants’ positive statements about the Company’s business, operations, and growth lacked a reasonable basis.
On Jan. 15, 2015, FXCM Inc (NYSE:FXCM) announced due to unprecedented volatility in EUR/CHF pair after the Swiss National Bank announcement in the morning of January 15, 2015, that clients experienced significant losses, generated negative equity balances owed to FXCM inc of approximately $225 million and that as a result of these debit balances, FXCM Inc may be in breach of some regulatory capital requirements.
On January 16, 2015, Leucadia National Corporation (NYSE: LUK) and FXCM (NYSE: FXCM) announced that Leucadia would be providing $300 million in cash to FXCM and its subsidiaries (collectively “FXCM”) that will permit FXCM to meet its regulatory-capital requirements and continue normal operations after January 15th’s loss of $225 million due to the unprecedented actions of the Swiss National Bank.
On Jan. 19, 2015, (FXCM Inc (NYSE:FXCM) announced further details on the agreement reached with Leucadia National Corporation (“Leucadia”) that permitted FXCM to meet its regulatory capital requirements and continue normal operations after significant losses were incurred due to unprecedented actions by the Swiss National Bank. Shares of FXCM Inc (NYSE:FXCM) declined from $17.18 per share on January 8, 2015 to as low as $1.28 per share on January 20, 2015.
Those who purchased NYSE:FXCM shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com