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GFI Group Inc.

Period: Jul 30, 2014 to Sep 8, 2014

Lead Plaintiff Deadline: Jan 27, 2015 + Deadline passed

Summary of Case:

On November 26, 2014, Scott+Scott, Attorneys at Law, LLP ("Scott+Scott") filed a class action complaint against GFI Group Inc. ("GFI") in the U.S. District Court for the Southern District of New York.  The complaint was filed on behalf of sellers of GFI common stock on the New York Stock Exchange ("NYSE") during the period between July 30, 2014 and September 8, 2014 and seeks remedies under the Securities Exchange Act of 1934.

On July 30, 2014, GFI announced that it had entered into an acquisition agreement with CME Group, Inc. ("CME") under which, CME would acquire all outstanding shares of GFI stock. In return, each share of GFI would be exchanged for $4.55 worth of CME Class A stock, placing a value of $580 million on GFI's equity. CME would also immediately sell the Company's over-the-counter and exchange listed derivatives brokerage and trade execution service business for $165 million in cash, plus assumption of $63 million in related liabilities. CME would retain GFI's auxiliary analytics software business.

The complaint alleges that defendants issued material misrepresentations and failed to disclose to investors material facts indicating that the Company had received superior offers and inquiries from third party purchasers interested in acquiring GFI. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (1) prior to announcing the proposed acquisition with CME, GFI had received superior offers and/or inquiries from other interested third parties, including BGC Partners, Inc.; and (2) the CME offer did not optimize GFI's value for stockholders and did not represent a singular and unique opportunity to return value. Defendants withheld this material, non-public information from, and otherwise misled investors, so that defendants could pursue and personally profit from a sweetheart deal with CME.

If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.

Complaint

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