Zamansky LLC Filed Class Action Lawsuit Against Virtus Investment Partners Inc.
On February 20, 2015, Zamansky LLC filed a class action lawsuit in the United States District Court, Southern District of New York, on behalf of 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% 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.
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 Jake Zamansky at 212 742-1414 or firstname.lastname@example.org
To view the complaint, please click here.