Shareholder rights law firm Johnson & Weaver, LLP is investigating whether certain officers and directors of FXCM Inc. (NYSE: FXCM) violated state or federal laws. The investigation is focused on certain statements issued by FXCM concerning the Company’s operations, finances and future prospects. FXCM provides online foreign exchange (FX) trading and related services to retail and institutional customers worldwide.
FXCM issued a statement on the evening of January 15, 2015 stating that “Clients experienced significant losses” after the franc’s surge that “generated negative equity balances owed to FXCM of approximately $225 million.” On January 16, 2015, shares of FXCM plummeted approximately 88% in pre-market trading to $1.49 from their close of $12.63 the evening of January 15th.
To forestall bankruptcy, during the trading day on January 16, 2014, the Company announced it negotiated a bailout program. It was disclosed at the same time that FXCM had accepted a $300 million two-year loan from Jefferies Group LLC parent Leucadia National Corp. The loan would keep FXCM solvent and in business, but at terms that would leave shareholders with just a sliver of future profits. Specifically, FXCM will pay up to 17% annual interest, and Leucadia can force a sale of the Company after three years. Overall, FXCM will end up paying as much as 82% out of future profits to Leucadia over the course of the loan.
If you have information that could assist in this investigation, or if you are a FXCM shareholder and are interested in learning more about the investigation or your legal rights and remedies, please contact Jim Baker (jimb@johnsonandweaver.com) by email or by phone at 619-814-4471. If you email, please include your phone number.
About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.
Contacts:
Jim Baker, 619-814-4471
jimb@johnsonandweaver.com
