Investor Sues Knight Capital Over $440M Trading Glitch

Law360, New York (August 17, 2012, 6:26 PM EDT) -- A Knight Capital Group Inc. shareholder on Friday filed a putative class action in Tennessee federal court claiming the brokerage firm should have disclosed the risks of new software that caused a major trading glitch and $440 million in losses in a matter of minutes.

Former Knight Capital shareholder Philip Osgood said the company should have known that the new technology could cause market disruption because it could place massive amounts of trades in seconds.

“Knight Capital did not adequately disclose … the fact that it...
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