Virtu Financial, Inc. (VIRT) Misled Investors Regarding its Operational and Technological Efficacy
A shareholder filed a class action on behalf of persons and entities who purchased or otherwise acquired Virtu Financial, Inc. (NASDAQ: VIRT) securities between March 1, 2019 and April 28, 2023. Virtu is a financial services company.
According to the complaint, defendants 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; (iii) the foregoing deficiencies increased the likelihood that the Company would be subject to enhanced regulatory scrutiny; and (iv) as a result, Defendants’ public statements were materially false and/or misleading at all relevant times.
On February 17, 2023, Virtu reported that “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.” On this news, Virtu’s stock price fell 1.60%, to close at $19.69 per share on February 21, 2023.
Then, on April 28, 2023, Virtu reported that it had been responding to requests for information from the SEC in connection with an investigation of aspects of the Company’s information access barriers, and added, in relevant part, “[i]n the absence of a settlement, the Company currently believes it may receive a Wells Notice from the SEC[,]” and “[t]he 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, Virtu’s stock price fell 5.68%, to close at $18.77 per share on May 3, 2023.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Virtu Financial, Inc. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.