Zamansky LLC Announces The Filing of a Class Action Lawsuit Against Virtus Investment Partners Inc.
PUBLISHED BY: Jacob Zamansky
New York, NY (Law Firm Newswire) February 20, 2015 – Notice is hereby given a class action lawsuit has been filed today, February 20, 2015, in the United States District Court, Southern District of New York by an investor individually and on behalf of all other investors who purchased or otherwise acquired common stock of Virtus Investment Partners Inc. (NASDAQ: VRTS) (“Virtus”) between May 28, 2013 and December 22, 2014 (the “Class Period”). The Class Action Complaint alleges that Virtus and certain of its officers and/or directors violated sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
Virtus is a mutual fund company based in Hartford, Connecticut, which is best known for its “AlphaSector Rotation” and “Premium AlphaSector” Funds. The Complaint alleges that since at least May 28, 2013, Virtus knew that its sales and marketing of the AlphaSector’s past track record was based on false and misleading statements about its success against the S&P 500 index. Virtus’s sales of its AlphaSector funds drove its increases in revenues and income, and caused substantial artificial appreciation in its stock price.
On September 5, 2014, the Wall Street Journal first reported that the SEC was investigating F-Squared, a co-adviser responsible for Virtus’s AlphaSector Funds, over alleged falsifications of its past track record. Following this disclosure, Virtus’s stock fell by $37 per share, and lost more than 16 percent of its value within a few days.
Subsequently, on December 22, 2014, the SEC announced its settlement of an administrative proceeding against F-Squared for a penalty of $35 million, revealing further details about the fraud.
The Complaint alleges that Virtus concealed its knowledge and role in F-Squared’s fraud from its investors, and knew that its stock price was artificially inflated.
Plaintiff is represented by Zamansky LLC, a New York-based law firm with extensive experience in prosecuting securities fraud and financial services arbitration and litigation. To learn more about Zamansky LLC, please visit http://www.zamansky.com.
If you purchased Virtus’s stock during the Class Period, you may, no later than 60 days from February 20, 2015, move the court to serve as lead plaintiff of the putative class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
Attention: JACOB H. ZAMANSKY
50 Broadway, 32nd Floor
New York, NY 10004
Tel.: (212) 742-1414
Fax: (212) 742-1177