Investigation On Behalf Of FCStone, Inc. (NASDAQ:FCSX) Investors By A Law Firm Concerning Possible securities fraud claims against FCStone Group, Inc. Announced
Investigation Announced - Contact the Shareholders Foundation, Inc at Mail@ShareholdersFoundation.com Or Go To www.ShareholdersFoundation.com To Find Out More
July 14, 2008 - According to a press release a law firm is currently investigating possible securities fraud claims against FCStone Group, Inc. (NASDAQ:FCSX) on behalf of investors who purchased the above securities during the period between November 15, 2007 and July 9, 2008.
If you currently own FCStone Group, Inc. (NASDAQ:FCSX) shares and / or purchased FCStone Group, Inc. (NASDAQ:FCSX) securities during the period between November 15, 2007 and July 9, 2008, or have information relating to this investigation of the law firm, please contact the Shareholders Foundation, Inc. immediately!
Shareholders Foundation, Inc.
3111 Camino del Rio North
– Suite 423 –
San Diego, CA 92108
Fax: +1-(858)-605-5739(Facsimile)
According to the press release during the period between November 15, 2007 and July 9, 2008 FCStone Group, Inc. (NASDAQ:FCSX; “FCStone”) entered into a hedge transaction which, for the first two quarters of fiscal 2008, generated net income of approximately $5 million. Most of this income was generated in the second quarter ended February 29, 2008. Then on April 10, 2008 FCStone Group, Inc. in a conference call failed to reveal the true nature of the hedge and the risks associated with its interest rate and in the third quarter of 2008, a significant spread arose between the U.S.-based Fed Funds interest rate and London Inter-Bank Rate (”LIBOR”), and as a result the Hedge was declining so swiftly in notional value that the FCStone Group, Inc sold the hedge, where the sale wiped out any Hedge based gains for the first two quarters of fiscal 2008, so the investigation. Then on on July 10, 2008, FCStone announced third quarter 2008 results, which included an after tax reduction in net income of $4.2 million, or $0.14 per diluted share, “including a $1.1 million net bad debt write-off primarily related to the consequences of unprecedented synthetic settlement pricing in the cotton market, and a $3.1 million decline in the fair value of interest rate derivative hedge instruments which had the effect of reversing previously recognized unrealized gains” and as a result of this news FCStone’s stock dropped $12.26 per share, or 41%, to close at $17.64 per share on July 10, 2008, so the investigation.
If you currently own FCStone Group, Inc. (NASDAQ:FCSX) shares and / or purchased FCStone Group, Inc. (NASDAQ:FCSX) securities during the period between November 15, 2007 and July 9, 2008, or have information relating to this investigation of the law firm, please contact the Shareholders Foundation, Inc. immediately!
Shareholders Foundation, Inc.
Allen Trevor
3111 Camino Del Rio North - Suite 423 -
92108 San Diego
Tel:+1-(858)-779-1554
Fax:+1-(858)-605-5739 Mail@ShareholdersFoundation.com www.ShareholdersFoundation.com
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