LOS ANGELES, Oct. 26, 2005 (PRIMEZONE) -- Notice is hereby given by Glancy Binkow & Goldberg LLP that a Class Action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired securities of Refco, Inc. ("Refco" or the "Company")(NYSE:RFX) between August 11, 2005 and October 18, 2005, inclusive (the "Class Period") including those who purchased the common stock of Refco pursuant and/or traceable to the Company's initial public offering on August 11, 2005.
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges certain of the Company's officers and directors with violations of federal securities laws. Refco provides execution and clearing services for exchange-traded derivatives and brokerage services in the fixed income and foreign exchange markets in the United States, Bermuda and the United Kingdom. On August 11, 2005, Refco and Refco insiders completed an initial public offering of Refco common stock, selling 26.5 million shares at $22 per share for proceeds of $583 million. Two months later, on October 10, 2005, before the market opened defendants revealed that the Company had been carrying an undisclosed $430 million receivable from its Chief Executive Officer, Defendant Phillip R. Bennett, and that Bennett was taking a leave of absence and Company financial statements issued since 2002 could no longer be relied upon. This announcement shocked the market, driving down the price of Refco shares from $28.56 per share to $15.60 per share on heavy trading volume.
Three days later, on October 13, 2005, the Company issued a press release announcing, among other things, a fifteen-day moratorium on all activities, including customer withdrawals, of Refco Capital Markets, Ltd. As a result of this news, Refco stock declined an additional $2.95 per share on extremely heavy volume. On October 17, 2005, Refco announced that the Company and certain of its subsidiaries have filed for protection under Chapter 11 of the United States Bankruptcy Code. Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than December 12, 2005, 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 with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.