Auric Goldfinger's Short List Message Board

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Non-Tech : Auric Goldfinger's Short List

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To: pilapir who wrote (10029)	6/12/2002 12:21:25 PM
From: StockDung	Read Replies (1) of 19428

Knight Trading Loses 14% After It Is Sued by Shareholders By TSC Staff 06/11/2002 05:38 PM EDT Knight Trading (NITE:NYSE - news - commentary - research - analysis) fell 14% Tuesday after word emerged that it had been sued by shareholders for allegedly inflating its profits. The complaint filed in federal court in Newark, N.J., charges that Knight lied about the company's trading practices, revenues and earnings, causing its share price to inflate. While the language is boilerplate for shareholder suits filed after a company delivers bad news, the suit is evidently the first to be filed after Knight acknowledged that it was the subject of an investigation by securities regulators. The NASD and SEC are probing allegations Knight traders ripped off clients by "front-running," or trading ahead of orders to profit on expected price changes. The suit filed by the Los Angeles law firm of Glancy & Binkow LLP seeks to represent shareholders who bought Knight stock between Feb. 29, 2000, and June 3, 2002. Knight has confirmed the investigation but said the allegations are false and have been lodged by a former employee who was fired. A representative wasn't immediately available to comment on the shareholder suit. Knight's shares fell 76 cents, or 14%, to $4.74 Tuesday, one day after the lawsuit was made public.

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