Class Action Suits Filed Against Refco Underwriters

Law360, New York (October 17, 2005, 12:00 AM EDT) -- As futures broker Refco’s financial situation becomes increasingly dire, litigation against the company continues to mount and now encompasses the banks that underwrote Refco’s initial public offering.

Several class action lawsuits have been filed against banks that underwrote the $585 million IPO, including Credit Suisse First Boston and Goldman Sachs. At least one of the suits also names Grant Thornton LLP, Refco’s auditor.

According to one suit, filed by Shalov, Stone & Bonner LLP, the underwriters omitted or misrepresented facts about Refco’s financial situation.

The defendants...
To view the full article, register now.