The Shareholders Foundation announces that an investor, who purchased shares of Virtus Investment Partners Inc (NASDAQ:VRTS), filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Virtus Investment Partners Inc in connection with certain allegedly false and misleading statements made between May 28, 2013 and December 22, 2014.
Investors who purchased shares of Virtus Investment Partners Inc (NASDAQ:VRTS) have certain options and for certain investors are short and strict deadlines running. Deadline: April 21, 2015. NASDAQ:VRTS investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 – 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of Virtus Investment Partners Inc (NASDAQ:VRTS) common shares between May 28, 2013 and December 22, 2014, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that that since at least May 28, 2013, Virtus Investment Partners 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 and that Virtus Investment Partners’ sales of its AlphaSector funds drove its increases in revenues and income, and caused substantial artificial appreciation in its stock price.
Virtus Investment Partners, Inc. is a provider of investment management products and services to individuals and institutions. According to an analyst F-Squared Investments Inc sub-advises on the Virtus Investment Partners mutual funds Premium AlphaSector (VAPAX), Allocator Premium AlphaSector (VAAAX), AlphaSector Rotation (PWBAX), Global Premium AlphaSector (VGPAX), Dynamic AlphaSector (EMNAX), that represent about $13 billion, or one-fifth, of Virtus Investment Partners’ $61 billion in assets under management.
According to a media report from early September 2014 F-Squared Investments Inc received a Wells notice from the Securities and Exchange Commission (“SEC”) reportedly indicating the SEC is considering bringing a civil case against F-Squared Investments Inc. in late 2013, F-Squared Investments Inc repordetly told clients it was being investigated by the SEC, and earlier in 2014 F-Squared Investments Inc reportdelty said the regulator’s investigation found certain F-Squared Investments Inc’s historical returns overstated performance.
The plaintiff says that 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 plaintiff alleges that that Virtus Investment Partners concealed its knowledge and role in F-Squared’s fraud from its investors, and knew that its stock price was artificially inflated.
Virtus Investment Partners Inc (NASDAQ:VRTS) declined from $224.50 per share in early September 2014 to as low as $128.17 per share on January 30, 2015.
On March 6, 2015, NASDAQ:VRTS shares closed at $130.00 per share.
Those who purchased shares of Virtus Investment Partners Inc (NASDAQ:VRTS) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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