NEW YORK, July 18, 2008 (LAWFUEL) — The Brualdi Law Firm P.C.
announces that a lawsuit has commenced in the United States District
Court for the Western District of Missouri on behalf of purchasers of
FCStone Group, Inc. (“FCStone” or “the Company”) (Nasdaq:FCSX) common
stock during the period between April 10, 2008 and July 9, 2008 (the
“Class Period”).
No class has yet been certified in the above action. Until a class is
certified, you are not represented by counsel unless you retain one. If
you purchased FCStone common stock during the period described above,
you have certain rights, and have until September 15, 2008 in which to
move for Lead Plaintiff status. Any member of the purported class may
move the Court to serve as lead plaintiff through counsel of their
choice, or may choose to do nothing and remain an absent class member.
To be a member of the class you need not take any action at this time,
and you may retain counsel of your choice. If you wish to discuss this
action or have any questions concerning this Notice or your rights or
interests with respect to these matters, please contact Sue Lee at The
Brualdi Law Firm, 29 Broadway, Suite 2400, New York, New York 10006, by
telephone toll free at (877) 495-1187 or (212) 952-0602, by email to
slee@brualdilawfirm.com or visit our website at
http://www.brualdilawfirm.com/
The Complaint alleges that the Company entered into an important hedge
transaction (the “Hedge”) which, for the first two quarters of fiscal
2008, generated net income to the Company of approximately $5 million.
Most of this income was generated in the second quarter ended February
29, 2008. In a conference call on April 10, 2008, the Company concealed
the true nature of the Hedge, by failing to reveal that should there
develop a significant spread between the U.S.-based Fed Funds interest
rate (the “Feds Funds Rate”) and the London Inter-Bank Rate (“LIBOR”),
the Hedge would decline in notional value. Based on what the market was
told, the investing public viewed the hedge as simply one to protect
the Company from falling interest rates, and not one which was
crucially dependent upon the spread between the Fed Funds Rate and
LIBOR not widening. However, in the third quarter of 2008 a significant
spread arose between the Fed Funds Rate and LIBOR. As a result, the
Hedge was declining so swiftly in notional value that the Company sold
the Hedge, which sale wiped out any Hedge based gains for the first two
quarters of fiscal 2008.
