WAYNESVILLE, N.C., Oct. 23, 2003 (PRIMEZONE) -- Raging Bull Holdings et al -- (a consortium of private investors) on behalf of themselves and others similarly situated, announced today that a class action lawsuit was filed on October 10, 2003 in the United States District Court for the District of Nebraska, case number 8:03CV421, on behalf of customers of Ameritrade Holdings Inc. (Nasdaq:AMTD) et al ("Ameritrade") who became customers of Ameritrade between March 29, 1995 and September 30, 2003, inclusive the ("Class Period"). The lawsuit additionally names Knight Trading Group Inc ("Knight") (Nasdaq:NITE), J. Joe Ricketts, Gene L. Finn, Kenneth D. Pasternak, Steven L. Steinman, Walter F. Raquet and Robert M. Lazarowitz as defendants.
The complaint charges Ameritrade, Knight and certain key officers and directors with mutiple violations of SEC Rules 3b, 10b and 11Ac. Ameritrade violated Rule 11Ac in that they failed to disclose to their customers their true affiliation with Knight, the true level of customer order flow routed to Knight for execution and the true payments for order flow received from Knight. Knight violated Rules 11Ac regarding order handling and display in connection with the orders placed via Ameritrade's customers. Both companies filed false historical data in required SEC filings and reports. All defendants violated Rules 10b and 3a in a scheme to defraud Ameritrade's customers through improper order execution by not properly revealing the true affiliation shared between the parties as complained of in this action.
Plaintiffs allege that approximately 70 percent of all customers' orders were routed to Knight for execution during the 8 1/2 year Class Period. This resulted in improper order handling and execution of nearly 40,000 trades per day on all securities on all major exchanges. The amount defrauded of the 3 million plus Class members in this action resulted in losses of billions of dollars of investment capital. The lawsuit seeks $4.5 billion in restitution, or $1500 per member.
Ameritrade failed their fiduciary responsibility to disclose the affiliation shared with Knight to their customers, the regulatory agencies and the investing public. Ameritrade's ownership position of Knight common stock, revenues received for payment for order flow and past equity income gains from Roundtable Partners LLC obligates Ameritrade to properly disclose all levels of this affiliation to the public. By not disclosing this affiliation, and Knight's willful violations of SEC Rules, as sanctioned by the SEC and the NASD, the Class Members have sustained the damages complained of herein.
If you became a customer of Ameritrade between March 29, 1995 and September 30, 2003, and were victim to your orders placed via Ameritrade and Knight not receiving the execution deserved, and sustained financial losses thereby, and wish to serve as lead plaintiff in this action, you must move the Court no later than December 29, 2003.
If you are of counsel, with a leading law firm, experienced in prosecuting complex cases involving brokerage and market maker firm fraud, breach of fiduciary duty and SEC and NASD Rules violations, and wish to represent this Class in this action, you may contact the filer of this complaint as per below.
Direct all inquiries regarding this matter to Denton L. Keener of Raging Bull Holdings by telephoning (828) 734-2097, via email to ragingbullinvgroup@charter.net, via regular mail to 177 Walnut Street Suite 9, Waynesville, NC 28786. A copy of this complaint is available from the Court or by contacting Raging Bull Holdings.