BALA CYNWYD, Pa., July 11, 2002 (PRIMEZONE) -- A shareholder sued Knight Trading Group, Inc. ("Knight" or the "Company") (Nasdaq:NITE) claiming that the company misled investors about its business and financial condition, as alleged in a complaint filed by the law firm of Schiffrin & Barroway, LLP.
The complaint was filed in the U.S. District Court for the District of New Jersey and seeks damages for violations of federal securities laws on behalf of all investors who bought Knight Trading Group, Inc. securities between from February 29, 2000 through June 3, 2002 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of Knight Trading Group, Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at http://www.sbclasslaw.com/cgi/signup.cgi.
The complaint alleges that the New Jersey-based Knight Trading Group, Inc. 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.
If you purchased Knight Trading Group, Inc. securities between February 29, 2000 through June 3, 2002, you may be a member of the class and have until August 9, 2002 to move the court to become a lead plaintiff. To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.