Investment Technology Group, Inc.
Robbins Arroyo LLP: Investment Technology Group, Inc. (ITG) Misled Shareholders According to Class Action
Robbins Arroyo LLP announces that a class action complaint filed against Investment Technology Group, Inc. (NYSE: ITG) in the U.S. District Court for the Southern District of New York recently survived defendants’ motion to dismiss. The complaint, brought on behalf of all purchasers of ITG securities between February 28, 2011 and August 3, 2015, alleged violations of the Securities Exchange Act of 1934 by ITG’s officers and directors. ITG operates as an independent broker and financial technology company in the United States, Canada, Europe, and the Asia Pacific.
Investment Technology Group Accused of Hiding Confidentiality Breaches
According to the complaint, in early 2010, ITG’s board of directors and Chief Executive Officer, Robert Gasser, approved but did not publicly disclose an experimental and secret proprietary trading desk known as Project Omega, which traded for ITG’s own account. In 2015, ITG disclosed the existence of Project Omega for the first time, revealing that Project Omega had illegally accessed confidential customer trade data within the company’s alternative trading system, POSIT, in order to maximize profitability. The complaint further states that for several years, ITG officials failed to ensure that sufficient controls or firewalls were in place to prevent the gaming of client data and failed to inform investors of blatant breaches of confidentiality. In 2015, an investigation by the U.S. Securities and Exchange Commission (“SEC”) resulted in an agreed-upon SEC Order, disclosing the fraud and fining the company $20.3 million, in turn causing ITG’s share price to plummet.
Investment Technology Group Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.