Lawsuit Overview
Settlement Overview
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July 23, 2013 - The court approved the settlement, entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissed the action with prejudice.
July 16, 2013 - The court held a final settlement hearing.
April 3, 2013 - The court amended the preliminary approval order.
March 18, 2013 - The court preliminarily approved the settlement.
March 1, 2013 - The court approved the dismissal of a lead plaintiff.
February 29, 2013 - Parties filed a stipulation of settlement.
February 29, 2013 - The lead plaintiffs filed a stipulation dismissing a lead plaintiff.
March 7, 2011 - The lead plaintiffs filed an amended consolidated complaint.
March 4, 2011 - The lead plaintiffs motion to add additional lead plaintiffs .
February 10, 2011 - The lead plaintiffs filed a motion to add additional lead plaintiffs.
November 16, 2010 - The court denied the defendants' motion to dismiss with leave to amend.
November 24, 2009 - The defendants filed a motion to dismiss.
September 25, 2009 - The lead plaintiffs filed a consolidated complaint on behalf of investors who purchased FCStone Group Inc (NASDAQ: FCSX) common shares between November 15, 2007 and February 24, 2009. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between November 15, 2007 and February 24, 2009.
July 20, 2009 - The lead plaintiffs and lead counsel were appointed and all cases were consolidated.
September 15, 2008 - A lead plaintiff motion was filed.
July 16, 2008 - An investor in shares of FCStone Group Inc (NASDAQ: FCSX now known as INTL FCStone Group Inc NASDAQ: INTL) filed a lawsuit in the U.S. District Court for the Western District of Missouri over alleged violations of the Federal Securities Laws between April 10, 2008 and July 9, 2008.
As set forth in the complaint FCStone Group Inc 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, FCStone Group Inc 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 FCStone Group Inc 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 FCStone Group Inc sold the Hedge, which sale wiped out any Hedge based gains for the first two quarters of fiscal 2008.
On July 10, 2008, FCStone Group Inc shocked the market by announcing third quarter earnings per share of 28 cents versus the expected 47 cents. Much of the deviation was due to the decline and sale of the Hedge. In addition, FCStone Group Inc announced previously unmentioned and significant bad debt expenses due to volatility in the cotton markets which had occurred in March. Nothing was said about this volatility and its adverse effects on the April 10, 2008 conference call. Upon revelation of this adverse news FCStone Group Inc shares (NASDAQ: FCSX) dropped over 41% wiping out over $300 million in shareholder value.