2008-07-19 09:58:57 - A shareholder has filed a lawsuit against FCStone Group, Inc. over allegedly materially false and misleading statements.

Shareholders have filed a lawsuit in the United States District Court for the Western District of Missouri against FCStone Group, Inc. on behalf of purchasers of FCStone Group, Inc. common stock during the period between November 15, 2007 and July 9, 2008.
If an investor purchased FCStone Group, Inc stock between November 15, 2007 and July 9, 2008 the investor has

certain rights, and will have until no later than 60 days from July 16th, 2008 to do the right actions. Please contact immideately the Shareholders Foundation, Inc., at (858)779-1554 or Mail(at)ShareholdersFoundation.com.
According to the complaint FCStone and certain of its officers and directors violated the Securities Exchange Act of 1934. FCStone is an integrated commodity risk management company providing risk management consulting and transaction execution services to commercial commodity intermediaries, end users and producers. According to the complaint alleges defendants issued materially false and misleading statements regarding FCStone's business and financial results. According to the lawsuit as a result of defendants' false statements, FCStone stock traded at artificially inflated prices during the Class Period, reaching its Class Period high of $52.40 per share in January 2008. Reportedly on June 22nd, 2008, an analyst with William Blair & Co. published a research note on FCStone, which stated that while current volatility in the agricultural commodities was increasing the need of producers and consumers to hedge their exposure to these commodities, the cost of hedging had dramatically increased due to an increase in the margin requirements, making it more difficult for producers and consumers to maintain hedge positions, and that tighter bank credit was limiting the ability of FCStone's customer base to hedge, which could cause transaction volume to decrease. After this partial disclosure, FCStone's stock fell $6.39 per share to close at $31.94 per share. Then according to the complaint on July 10th, 2008, before the market opened, the Company issued a press release announcing its 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. Upon this disclosure, FCStone's stock dropped $12.26 per share to close at $17.64 per share on July 10, 2008, a one-day decline of 41% on extremely high volume. According to the complaint, the true facts, which were known by the defendants but concealed. The plaintiff seeks to recover damages on behalf of all purchasers of FCStone common stock during the Class Period.