NEW YORK, June 21, 2002 (PRIMEZONE) -- Please take notice that the law firm of Kirby McInerney & Squire, LLP has commenced a class action lawsuit in the United States District Court for the District of New Jersey on behalf all persons who purchased securities of Knight Trading Group, Inc. ("Knight") (Nasdaq:NITE) in the period between February 29, 2000 and June 3, 2002 (the "class period").
A copy of the complaint is available from the Court or from Kirby McInerney & Squire. Please visit our website, which offers summary and detailed information concerning the case at http://www.kmslaw.com/new_cases/knight_trading/knight.htm, or contact us by phone at (888) 529-4787 or by email at mkennedy@kmslaw.com.
The Complaint charges Knight and Kenneth D. Pasternak, Knight's CEO, during the specified time period, with violations of sections 10(B) and 20(a) of the Securities Exchange Act of 1934. Among other things, plaintiff claims that defendants' material omissions and materially false and misleading statements regarding the nature of Knight's trading practices, caused Knight's stock price to become artificially inflated, inflicting damages on investors.
The Complaint alleges that defendants' class period statements regarding the Company's financial performance and trading practices were materially false and misleading because they failed to disclose and/or misrepresented, among other things, (i) that Knight Trading's employees 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, Knight Trading 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.
Plaintiffs are represented by Kirby McInerney & Squire, LLP, which specializes in complex litigation, including securities class actions. The firm has repeatedly demonstrated its expertise in this field, and has been recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and its achievements and quality of service have been chronicled in numerous published decisions. More information about the firm, class actions in general or about the role of the lead plaintiff in a securities class action can be obtained from Kirby McInerney & Squire's website at http://www.kmslaw.com.
If you are a member of the class described above, you may, no later than August 9, 2002, move the Court to serve as lead plaintiff of the class, if you so choose, pursuant to the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), 15 U.S.C. section 78u-4(a). A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to seek appointment as a lead plaintiff. For more information about the case, its claims, and your rights, please contact:
Ira M. Press, Esq.
Michele Kennedy
KIRBY McINERNEY & SQUIRE, LLP
830 Third Avenue, 10th Floor
New York, New York 10022
Telephone: (212) 317-2300
or Toll Free (888) 529-4787
E-Mail: mkennedy@kmslaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.