Published:
The Brualdi Law Firm Announces Class Action Lawsuit Against FCStone Group, Inc.
NEW YORK, July 18, 2008 (PRIME NEWSWIRE) -- The Brualdi Law Firm P.C. announces that a lawsuit has commenced in the United States District Court for the Western District of Missouri on behalf of purchasers of FCStone Group, Inc. ("FCStone" or "the Company") common stock during the period between April 10, 2008 and July 9, 2008 (the "Class Period").
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased FCStone common stock during the period described above, you have certain rights, and have until September 15, 2008 in which to move for Lead Plaintiff status. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Sue Lee at The Brualdi Law Firm, 29 Broadway, Suite 2400, New York, New York 10006, by telephone toll free at (877) 495-1187 or (212) 952-0602, by email to slee@brualdilawfirm.com or visit our website at http://www.brualdilawfirm.com/
The Complaint alleges that the Company entered into an important hedge transaction (the "Hedge") which, for the first two quarters of fiscal 2008, generated net income to the Company of approximately $5 million. Most of this income was generated in the second quarter ended February 29, 2008. In a conference call on April 10, 2008, the Company concealed the true nature of the Hedge, by failing to reveal that should there develop a significant spread between the U.S.-based Fed Funds interest rate (the "Feds Funds Rate") and the London Inter-Bank Rate ("LIBOR"), the Hedge would decline in notional value. Based on what the market was told, the investing public viewed the hedge as simply one to protect the Company from falling interest rates, and not one which was crucially dependent upon the spread between the Fed Funds Rate and LIBOR not widening. However, in the third quarter of 2008 a significant spread arose between the Fed Funds Rate and LIBOR. As a result, the Hedge was declining so swiftly in notional value that the Company sold the Hedge, which sale wiped out any Hedge based gains for the first two quarters of fiscal 2008.
CONTACT: The Brualdi Law Firm P.C.
Sue Lee, Esq.
(212)-952-0602
(877)-495-1187
slee@brualdilawfirm.com
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