NEW YORK, Oct. 24, 2003 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Southern District of New York on behalf of all purchasers of LaBranche & Co. Inc. ("LaBranche" or the "Company:) (NYSE:LAB) securities between January 25, 2000 and October 15, 2003, inclusive (the "Class Period"). A copy of the complaint filed in this action can be viewed on the firm's website at www.faruqilaw.com
The complaint charges defendants with violations of federal securities laws by issuing a series of materially false and misleading press releases concerning LaBranche's financial results and business prospects. Specifically, the complaint alleges that LaBranche failed to disclose, among other facts, that: (1) LaBranche engaged in the illegal practice of "front-running" trades at the NYSE, which allowed LaBranche to act on nonpublic information to trade ahead of customers lacking that knowledge; (2) LaBranche illegally "traded ahead" of customer orders by causing or allowing its traders to put LaBranche's own interest ahead of investors by ignoring one investor order while in the process of interacting with another investor; and (3) that LaBranche, throughout the Class Period, improperly recognized revenue from its illegal scheme in violation of GAAP. As a result of this illegal scheme, LaBranche materially overstated and artificially inflated its earnings, net income, and earnings per share.
On October 16, 2003, however, the NYSE announced that it would bring disciplinary action against LaBranche and the other specialist firms for failing to comply with fundamental NYSE auction market rules and policies. Additionally, the NYSE stated that it will also seek substantial fines from these specialist firms. As a result of this announcement, LaBranche's stock declined 10.3% or $1.29 per share on extremely heavy trading volume to close at $11.26 on October 16, 2003.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired LaBranche securities between January 25, 2000 and October 15, 2003, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you wish to obtain information concerning joining this action you can do so under the "Join Lawsuit" section of our website at www.faruqilaw.com
If you purchased LaBranche securities during the Class Period, you may, not later than December 15, 2003, move the court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca