NEW YORK, Oct. 17, 2005 (PRIMEZONE) -- Roy Jacobs & Associates announced today that it has commenced a class action in the United States District Court for the Southern District of New York against Refco, Inc. ("Refco" or the "Company") (NYSE:RFX), certain individual defendants, and the lead underwriters of Refco's August 2005 initial public offering. Plaintiff intends to amend the Complaint to expand the Class Period from August 11, 2005 through October 13, 2005.
If you wish to discuss this action or have questions concerning this notice or your rights as a class member, you may contact Roy Jacobs, Esq. toll free at 1-888-884-4490 for more information, or by e-mail by writing to classattorney@pipeline.com. There is no cost or fee to you for information regarding your rights in this class action, or for case materials you may wish to have sent to you. You may be a member of this class action regardless of whether you have sold your shares, or retained your shares.
Refco went public via an initial public offering on August 11, 2005. Just nine weeks later, on October 10, 2005, Refco revealed that defendant Phillip R. Bennett, its CEO and Chairman and controlling shareholder, was being placed on a leave of absence and that the company had made a related-party loan of $430 million to an entity controlled by Bennett. Refco disclosed that the "receivable was the result of the assumption by an entity controlled by Mr. Bennett of certain historical obligations owed by unrelated third parties to the Company, which may have been uncollectible." The Company also acknowledged that based on the undisclosed related party transaction, its prior financial statements for the fiscal years ending 2002 through 2005 and the quarter ended May 31, 2005 should not be relied upon. Trading in Refco shares was halted on October 13, 2005, after they had fallen to a price of $7.90 per share.
If you purchased Refco securities during the Class Period, from August 11, 2005 through October 13, 2005, you may qualify to serve as Lead Plaintiff on behalf of the Class. Motions for appointment to the Lead Plaintiff position must be filed no later than December 12, 2005.