NEW YORK, Feb. 27, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased the securities of Virtus Investment Partners, Inc. ("Virtus" or the "Company") (Nasdaq: VRTS ) between May 28, 2013 and December 22, 2014, inclusive (the "Class Period"), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the "Complaint").
The Complaint alleges that the Company 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. The Complaint further alleges that the Company'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 the Company's AlphaSector Funds, over alleged falsifications of its past track record. Following this disclosure, the Company's stock fell by $37 per share, and lost more than 16 percent of its value within a few days.
On December 22, 2014, the SEC announced that it had formally charged F-Squared and its President for fraud and various violations of the Investment Advisors Act of 1940, and that it had reached a settlement with F-Squared regarding those charges. The SEC's announcement, although never mentioning the Company by name, revealed further details and evidence of F-Squared's fraud which implicated the Company.
If you wish to serve as lead plaintiff, you must move the Court no later than April 27, 2015 . A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com .
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