NEW YORK, May 27, 2023 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Virtu Financial, Inc. ("Virtu" or the "Company") (NASDAQ: VIRT) and reminds investors of the July 18, 2023 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $100,000 investing in Virtu stock or options between March 1, 2019 and April 28, 2023 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/VIRT.
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
Virtu is a financial services company that operates through two segments, Market Making and Execution Services. The Company's product suite includes offerings in execution, liquidity sourcing, analytics and broker-neutral, and multi-dealer platforms in workflow technology. As part of its operations, Virtu claims to have established information access barriers, or separations between different departments or individuals designed to block the exchange of confidential information and prevent conflicts of interest.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or 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, after the market had closed, Virtu filed an Annual Report on Form 10-K with the SEC, reporting the Company's financial and operating results for the year ended December 31, 2022 (the "2022 10-K"). In the 2022 10-K, Virtu disclosed that "the Company has been responding to requests for information from the U.S. Securities and Exchange Commission ("SEC") in connection with an investigation of aspects of the Company's information access barriers."
On this news, Virtu's stock price fell $0.33 per share, or 1.62%, to close at $19.94 per share on February 21, 2023.
Then, on April 28, 2023, Virtu filed a Quarterly Report with the SEC, reporting the Company's financial and operating results for the quarter ended March 31, 2023 (the "Q1 2023 10-Q"). In the Q1 2023 10-Q, Virtu reiterated 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 May 1, 2023, the Wall Street Journal published an article entitled "Virtu Stock Falls After Disclosure of Potential SEC Enforcement Action." In the article, it was revealed that a Virtu spokesperson stated that the investigation was "primarily focused on an access controls weakness in one of [Virtu's] internal back-office systems containing post trade information that theoretically could allow certain system users access greater than what was intended by our policies."
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Virtu's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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