NEW YORK, July 10, 2008 (PRIME NEWSWIRE) -- Roy Jacobs & Associates announces it is investigating possible securities law violations concerning the announcement by FCStone Group, Inc. ("FCStone" or the "Company") (Nasdaq:FCSX) that earnings for the third quarter of 2008 would be significantly below estimates due in material part to a hedge transaction which the Company terminated, booking material losses for the quarter on a mark-to-market basis.
For further information, please contact Roy L. Jacobs, Esq. toll-free at 1-888-884-4490 or by email to rjacobs@jacobsclasslaw.com.
During the third quarter which ended May 31, 2008, the Company became aware that an existing risky hedge transaction had turned negative and was terminated to avoid even greater losses. Although the Company's senior management was aware of the losses incurred and to be incurred, it failed to disclose any information concerning this transaction at and after the close of the third quarter.
Upon revelation of the adverse news on July 10, 2008, FCStone shares dropped over 47% wiping out over $300 million in shareholder value.
If you purchased FCStone shares during the period from May 31, 2008 through July 9, 2008 and are interested in discussing your rights free of charge, please contact Roy L. Jacobs.