CHICAGO, June 27, 2002 (PRIMEZONE) -- Much Shelist Freed Denenberg Ament & Rubenstein, P.C. announces that class action lawsuits are pending in the United States District Court for the District of New Jersey on behalf of purchasers of the securities of Knight Trading Group, Inc. ("Knight Trading" or the "Company") (Nasdaq:NITE) between February 29, 2000 and June 3, 2002, inclusive ("Class Period").
It has been alleged that Knight Trading and Kenneth D. Pasternak, Knight Trading's Chief Executive Officer, 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 materially false and misleading statements to the market.
According to the allegations, defendants issued statements regarding Knight Trading's financial performance and trading practices, which were materially false and misleading because they failed to disclose and/or misrepresented, among other things, that: (i) the Company's traders were engaging in an elaborate system of trading-rule violations known as "front-running," in which customer orders were delayed while defendants' traders made purchases in the same stocks ordered by customers, thereby benefiting themselves at the expense of the customer; and (ii) that the Company's front-running practices subjected the Company to the heightened risk that it would be sanctioned by the National Association of Securities Dealers ("NASD").
On June 3, 2002, the last day of the Class Period, the Company disclosed that the Securities and Exchange Commission and the NASD were investigating its trading practices. When the market opened for trading the following day, shares of Knight Trading plummeted 28% from the previous day's close.
Much Shelist is currently investigating these claims. If you wish to discuss your rights and interests, or if you have information relevant to the lawsuit, you may contact Carol V. Gilden or Michael E. Moskovitz at Much Shelist Freed Denenberg Ament & Rubenstein, P.C., by calling a toll-free number 1-800-470-6824, or by sending an e-mail to investorhelp@muchshelist.com. Your e-mail should refer to Knight Trading.
If you purchased Knight Trading securities during the Class Period and if you meet certain other legal requirements, you may file a motion in the court where the lawsuit has been filed to serve as a lead plaintiff. You must file your motion no later than August 9, 2002.
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. The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4).
Much Shelist's history is one of experience, leadership and results. For more than 25 years, Much Shelist has represented plaintiffs in class action litigation in federal and state courts across the United States. The firm has successfully prosecuted cases involving securities fraud, antitrust violations, consumer fraud, unlawful business practices and insurance company fraud. Under Much Shelist's leadership, class members have obtained judgments and settlements in excess of $4 billion.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.