FCStone Investors Win Class Cert. In Stock Drop Suit

Law360, New York (February 13, 2012, 1:30 PM EST) -- FCStone Group Inc. shareholders who claim the commodities broker inflated its stock price by concealing a large energy trading loss can bring their suit as a putative class action, a Missouri federal judge ruled Friday.

U.S. District Judge Howard F. Sachs partially granted the plaintiffs’ motion for class certification. The suit claims FCStone falsely told investors in November 2008 that it had adequately reserved for a $20 million loss from trades by an FCStone energy trader.

The company disclosed in February 2009 that losses from the trades...
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