Published: March 08, 2011
Abraham, Fruchter & Twersky, LLP Announces Investigation of FXCM Inc.
NEW YORK - (BUSINESS WIRE) - Abraham, Fruchter & Twersky, LLP has commenced an investigation on FXCM
Inc. ("FXCM" or the "Company" ) (NYSE:FXCM) for possible violations of
federal securities laws on behalf of investors who purchased FXCM common
stock pursuant and/or traceable to the Company's December 1, 2010
Initial Public Offering (the "IPO" ).
The firm is investigating whether the Company and certain of its
officers and directors violated the federal securities laws by making
inaccurate and misleading statements in the Company's Registration
Statement and Prospectus regarding the true nature of its business,
operations, and prospects. More specifically, the firm is investigating
whether the Company failed to disclose that FXCM's growth and trading
volume had slowed or weakened by the time of the IPO.
On February 8, 2011, a complaint was filed against FXCM alleging
violations of the Racketeer Influenced and Corrupt Organizations Act
("RICO" ). The complaint alleged, among other things, that FXCM falsely
portrayed its trading platform as a fair, transparent, and true foreign
currency market free from dealer intervention or manipulation; FXCM
interfered with customer trades and traded against its own customers;
and that FXCM lured thousands of customers to its trading platform by
promoting a "demo account." Other problems in FXCM's trading platform
included slow server command, false error messages, flash trades,
arbitrary margin rules, slippage, and slow fill or no fill commands,
each designed with the purpose of transferring wealth away from the
Company's customers and to FXCM in an illegal and improper manner. As
soon as investors discovered these problems, they stopped using FXCM's
trading platform.
On February 16, 2011 a Citigroup analyst downgraded shares of FXCM and
reported declining trading customers. In a reaction to this news, shares
of FXCM common stock dropped from a close of $13.70 per share on
February 15, 2011 to close at $12.05 per share on extremely heavy
trading volume.
If you purchased FXCM common stock pursuant and/or traceable to the
Company's December 1, 2010 IPO and you wish to serve as lead plaintiff
in this action, you must move the Court no later than May 2, 2011. Any
member of the proposed class may move the Court to serve as lead
plaintiff through counsel of their choice, or may choose to do nothing
and remain a member of the proposed class.
If you would like to discuss this action or if you have any questions
concerning this notice or your rights as a potential class member or
lead plaintiff, you may contact: Jeffrey S. Abraham or Arthur J. Chen of
Abraham, Fruchter & Twersky, LLP toll free at (800) 440-8986, or via
e-mail at info@aftlaw.com or achen@aftlaw.com.
Abraham, Fruchter & Twersky, LLP has extensive experience in securities
class action cases, and the firm has been ranked among the leading class
action law firms in terms of recoveries achieved by a survey of class
action law firms conducted by Institutional Shareholder Services. For
more information on the lawsuit or the firm, please visit our website at http://www.aftlaw.com.
Attorney Advertising. Prior results do not guarantee a similar
outcome.

Abraham, Fruchter & Twersky, LLP
Jeffrey S. Abraham
Arthur
J. Chen
One Penn Plaza, Suite 2805
New York, N.Y. 10119
Telephone:
(800) 440-8986
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