The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of those who acquired Virtu Financial, Inc. (“Virtu” or the “Company”) (NASDAQ: VIRT) securities during the period from March 1, 2019 through April 28, 2023 (the “Class Period”). Investors have until July 18, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Virtu is a financial services company that operates through two segments, Market Making and Execution Services, with a product suite that includes offerings in execution, liquidity sourcing, analytics and broker-neutral, and multi-dealer platforms in workflow technology.
On February 17, 2023, after the market had closed, Virtu filed the 2022 10-K with the SEC. The 2022 10-K stated, in relevant part that the Company has been subject to several matters “in which the Company has been responding to requests for information from the U.S. Securities and Exchange Commission in connection with an investigation of aspects of the Company’s information access barriers. The Company is cooperating with this civil investigation.” On this news, the price of Virtu shares declined by $0.33 per share, or approximately 1.63%, from $20.27 per share to close at $19.94 on February 21, 2023.
On April 28, 2023, Virtu filed the Q1 2023 10-Q with the SEC. The Q1 2023 10-Q stated, in relevant part: “The Company is cooperating with this civil investigation and has engaged in settlement discussions in respect of the matter. In the absence of a settlement, the Company currently believes it may receive a Wells Notice from the SEC. The proposed action would be expected to allege violations of federal securities laws with respect to the Company’s information barriers policies and procedures for a specified time period in and around January 2018 to April 2019 and related statements made by the Company during such period.” On this news, the price of Virtu shares declined by $0.75 per share, or approximately 3.74%, from $20.05 per share to close at $19.30 on May 1, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) the Company maintained deficient policies and procedures with respect to its information access barriers; (ii) accordingly, Virtu had overstated the Company’s operational and technological efficacy as well as its capacity to block the exchange of confidential information between departments or individuals within the Company; and (iii) the foregoing deficiencies increased the likelihood that the Company would be subject to enhanced regulatory scrutiny.
If you purchased or otherwise acquired Virtu securities, have information, or would like to learn more about this lawsuit and how it might affect your rights, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
