NEW YORK, June 28, 2002 (PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the District of New Jersey, on behalf of all persons or entities who purchased Knight Trading Group, Inc. ("Knight" or the "Company") securities (Nasdaq:NITE) between February 29, 2000 and June 3, 2002, both dates inclusive (the "Class Period"). Knight Trading Group, Inc. and Kenneth D. Pasternak, are named as defendants in the action.
To discuss this action, this announcement, or your rights or interests, please contact plaintiff's counsel, Eric Belfi or Sharon Lee, Rabin & Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at email@rabinlaw.com.
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between February 29, 2000 and June 3, 2002, thereby artificially inflating the price of Knight securities. The complaint alleges that throughout the Class Period, defendants issued statements regarding the Company's financial performance and trading practices. As alleged in the complaint, these statements were materially false and misleading because they failed to disclose and/or misrepresented, among other things, (i) that Knight traders were engaging in an elaborate system of trading-rule violations known as "front-running," in which customer orders were delayed while defendants' traders made purchases in the same stocks ordered by customers, thereby benefitting themselves at the expense of the customer; and (ii) that the Company's front-running practices subjected the Company to the heightened risk that it would be sanctioned by the National Association of Securities Dealers ("NASD").
On June 3, 2002, the last day of the Class Period, the Company disclosed that its trading practices were being investigated by both the Securities and Exchange Commission and the NASD. Following this announcement, on June 4, 2002, when the market opened for trading, shares of Knight plummeted 28% from the previous day's close.
Plaintiff is represented by the law firm of Rabin & Peckel LLP. Rabin & Peckel LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You can learn more information about Rabin & Peckel LLP at www.rabinlaw.com.
If you purchased Knight securities between February 29, 2000 and June 3, 2002, you may, no later than August 9, 2002 move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. If you wish to discuss this action further or have any questions concerning this announcement, or your rights or interests, please contact plaintiff's counsel, Eric Belfi or Sharon Lee, Rabin & Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at email@rabinlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.