NEW YORK, June 28, 2002 (PRIMEZONE) -- Wolf Popper LLP announced today that it has filed a class action complaint against Knight Trading Group, Inc. ("Knight Trading" or the "Company") (Nasdaq:NITE), and former Knight Trading Chief Executive Officer Kenneth D. Pasternak alleging that defendants made materially false and misleading public statements concerning Knight Trading's business, trading practices, and financial performance.
The complaint alleges that defendants were aware of but failed to disclose that during the Class Period (from February 29, 2000 to June 3, 2002, inclusive) Company traders routinely engaged in improper trading practices known as "front-running," wherein the traders delayed execution of Knight Trading customer stock purchase orders until the traders themselves made purchases in those same stocks. The complaint alleges that this practice forced Knight Trading customers to pay higher stock prices and generated undeserved windfall profits for Knight Trading and Company traders. The complaint has been filed on behalf of all persons who purchased Knight Trading common stock during the Class Period.
On June 3, 2002, the fraudulent scheme of improper trading practices was exposed when it was announced that the National Association of Securities Dealers ("NASD") and the SEC were investigating the Company's trading practices. The following day, June 4, 2002, as the market absorbed the revelations of Knight Trading's illegal trading practices and the SEC and NASD investigations, the market price of Company stock plunged from its closing price of $5.92 per share on June 3, 2002, to close at $4.65 per share on June 4, 2002, on unusually high trading volume. During the Class Period, shares of Knight Trading common stock traded as high as $60.06 per share.
Any member of the proposed class who desires to be appointed lead plaintiff in this action must file a motion with the Court no later than August 9, 2002. Class members must meet certain legal requirements to serve as a lead plaintiff. If you have questions or information regarding this action, or if you are interested in serving as a lead plaintiff in this action, you may call or write:
Wolf Popper LLP, Robert C. Finkel, Esq. 845 Third Avenue, New York, NY 10022-6689
Tel.: 212.451.9620, Toll Free: 877.370.7703; Fax: 212.486.2093, Toll Free: 877.370.7704
Email: irrep@wolfpopper.com; website: www.wolfpopper.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca