Milberg Weiss Announces Class Action Suit Against Knight Trading Group, Inc.
NEW YORK--(BUSINESS WIRE)--Nov. 16, 2000
The following is an announcement by the law firm of Milberg Weiss Bershad Hynes & Lerach, LLP:
The law firm of Milberg Weiss Bershad Hynes & Lerach LLP announces that a class action lawsuit was filed on November 8, 2000, on behalf of purchasers of the securities of Knight Trading Group Inc. ("Knight" or the "Company") (NASDAQ:NITE) between July 19, 2000 and October 4, 2000, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be viewed on Milberg Weiss' website at:
The action, numbered 00-5506 (KSH) is pending in the United States District Court for the District of New Jersey, located at 50 Walnut St., Newark, NJ 07102, against defendants Knight, Kenneth Pasternak (CEO, President and Director), Robert Turner (Chief Financial Officer, Treasurer and Executive V.P.), Steven Steinman (Chairman of the Board of Directors until May 2000), Robert Lazarowitz (Executive V.P., Director and Chief Operating Officer of Knight Capital Markets). The Honorable Katharine S. Hayden is the Judge presiding over the case.
The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between July 19, 2000 and October 4, 2000. For example, as alleged in the complaint, on July 19, 2000, defendants represented in an analysts conference call that they were comfortable with estimates of 20%-30% growth in earnings per share during the third quarter of 2000, over the comparable 1999 period. The complaint alleges that the statement was made without a reasonable basis, given operational problems known to defendants, and the Company's increasing international expansion costs. On November 4, 2000, Knight issued a press release announcing third quarter results that were well below its prior assurances. In reaction to this announcement, the price of Knight's shares dropped by 14% in one day. Prior to disclosing the above information, certain Knight insiders sold $50,000,000 worth of their personally held Knight common stock.
If you bought the securities of Knight between July 19, 2000 and October 4, 2000, you may, no later than January 16, 2001, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Milberg Weiss Bershad Hynes & Lerach LLP, or other counsel of your choice, to serve as your counsel in this action.
Milberg Weiss Bershad Hynes & Lerach LLP (http://www.milberg.com) is a 160-lawyer firm with offices in New York City, San Diego, San Francisco, Los Angeles, and Boca Raton and is active in major litigations pending in federal and state courts throughout the United States.
Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and others, and has been responsible for more than $20 billion in aggregate recoveries. Please contact the Milberg Weiss website for more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following attorneys:
Steven G. Schulman or Samuel H. Rudman One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165
Phone number: (800) 320-5081 Email: knightcase@milbergNY.com Website: http://www.milberg.com