SAN DIEGO and NEW YORK, Jan. 16, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of INTL FCStone, Inc. (NASDAQGS: INTL) has filed a federal securities fraud class action complaint in the U.S. District Court for the Southern District of New York. The complaint alleges that the company and certain of its officers violated the Securities and Exchange Act of 1934 between February 17, 2010 and December 16, 2013 (the "Class Period"). INTL FCStone is a financial service holding company that along with its subsidiaries provides advisory and execution services in commodities, currencies, and securities.
INTL FCStone Accused of Misstating Financial Results
According to the complaint, shares of INTL FCStone fell $3.97 per share, to close at $22.54 per share on February 9, 2012, following a conference call in which INTL FCStone disclosed that company revenues were $20 million lower than the same period for the prior year due to various critical issues such as slowing revenue streams and falling volume in the commodities market. INTL FCStone shares fell approximately 8% more, or $1.62 per share, to close at $18.93 per share on December 17, 2013, following the disclosure that the company would be unable to file its Form 10-K for the fiscal year ended September 30, 2013, as it was reviewing whether the company would need to restate its financial results for its 2011, 2012, and 2013 fiscal years due to an overstatement of trading gains in the reconciliation of FCStone Markets. Further, the company estimated that the restatement would reduce previously reported trading gains by up to $10.2 million and consolidated net income by approximately $6.4 million.The complaint alleges that INTL FCStone made false and misleading statements including that: (i) critical integration issues existed with the company's acquisitions, including financial reporting for its Commodity and Risk Management unit; (ii) the company overstated revenues in trading gains and; (iii) the company lacked adequate internal and financial controls.