Ongoing Investigation of Virtu Financial by Former Louisiana Attorney General Raises Concerns

Investigation into Virtu Financial by Kahn Swick & Foti

Introduction

The scrutiny of Virtu Financial, Inc. (NasdaqGS: VIRT) has intensified as Kahn Swick & Foti, LLC (KSF), helmed by former Louisiana Attorney General Charles C. Foti, Jr., continues its investigation into the company's operational frameworks. This investigation arises against a backdrop of increasing regulatory concerns surrounding Virtu's failure to establish effective barriers to safeguard sensitive trading data from unauthorized employee access.

The Allegations

For several years, Virtu Financial has been under watch from finance media and regulatory bodies, particularly due to allegations about its information access controls—or lack thereof. The company reportedly failed to implement adequate barriers that would protect its Execution Services customers' confidential data, leading to unfettered access for almost any employee. These claims prompted inquiries from the U.S. Securities and Exchange Commission (SEC), which have revealed a precarious situation for the firm if it does not achieve a settlement; the company anticipates receiving a Wells Notice from the SEC.

In September 2023, the SEC initiated formal charges against Virtu. Alongside this, the company and specific executives are being contested in a securities class action lawsuit, accused of failing to disclose pivotal information that might have influenced investor decisions during the class period—a move deemed to violate federal securities laws. A recent ruling denied Virtu's motion to dismiss, allowing the case to proceed, indicating the potential for significant consequences ahead.

KSF's Focus and Legal Framework

The investigation headed by Kahn Swick & Foti aims to determine whether Virtu's officers and directors have neglected their fiduciary duties towards shareholders or violated existing laws at state or federal levels. Charles C. Foti, a dedicated advocate for investor rights, is spearheading this inquiry with the firm’s robust legal expertise in securities litigation. Investors who have been affected by potential mismanagement and breaches are being encouraged to come forward to explore their rights and options for legal recourse.

KSF is a distinguished boutique law firm recognized nationally for its adept handling of complex securities litigation, and its recent ranking as one of the top firms in terms of settlement values signifies its reputation within the industry. The firm specializes in advocating for both institutional and retail investors seeking restitution from companies embroiled in fraudulent activities or misdeeds.

Call for Investor Input

KSF is reaching out to individuals who possess knowledge relevant to the investigation, particularly long-term holders of Virtu shares who may wish to understand their legal standing within this context. Interested parties are invited to engage without cost or obligation; they can reach KSF through various channels, including a toll-free hotline and email access to managing partner Lewis Kahn.

Conclusion

The continual investigation into Virtu Financial's practices underscores a critical moment in financial regulation and corporate governance. As KSF diligently pursues accountability, the outcome of this inquiry could set precedents not only for Virtu but potentially for the wider financial services industry. Investors remain hopeful that thorough scrutiny will lead to enhanced protective measures against corporate malfeasance in the future.

For more information about Kahn Swick & Foti and their initiatives, please visit ksfcounsel.com. Reporting on such vital matters is essential to foster a transparent and secure financial market, underscoring the law firm's commitment to safeguarding investor rights and enhancing corporate accountability.