San Diego, CA -- (SBWIRE) -- 08/28/2012 -- An investor in shares of Knight Capital Group Inc. (NYSE:KCG) filed a lawsuit against Knight Capital Group Inc. over alleged securities laws violations in connection with its costly glitch in trading software that caused Knight Capital Group Inc. to lose more than $400 million.

Investors who purchased shares of Knight Capital Group Inc. (NYSE:KCG) shares between February 29, 2012, and August 1, 2012, have certain options and there are strict and short deadlines running. Deadline: October 16, 2012. NYSE:KCG investors should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.

According to the complaint the plaintiff alleges on behalf of all persons who owned or otherwise acquired the common stock of Knight Capital Group Inc. (NYSE:KCG) on the New York Stock Exchange (“NYSE”) between February 29, 2012, and August 1, 2012, that Knight Capital Group Inc. (NYSE:KCG) violated federal securities laws.

Shares of Knight Capital Group Inc. (NYSE:KCG) dropped from $10. 34 per share to as low as $2.329 on August 2, 2012, after Knight Capital Group experienced a technological glitch related to the installation of trading software that resulted in numerous erroneous orders.

When trading opened on the NYSE on Wednesday August 1st, 2012, a newly installed but faulty software that caused Knight Capital Group Inc. to acquire a large volume of stock shares at unfavorable prices.

The plaintiff says that at some point on August 1, 2012 Knight Capital Group Inc. held nearly $7 billion worth of stocks as a result of a faulty trading algorithm or algorithms.

In a statement, Knight Capital Group Inc said that on August 1, 2012 the “issue was related to Knight's installation of trading software and resulted in Knight sending numerous erroneous orders in NYSE-listed securities into the market. This software has been removed from the company's systems.

Furthermore, Knight Capital Group Inc. said that, it “has traded out of its entire erroneous trade position, which has resulted in a realized pre-tax loss of approximately $440 million".

Shares of Knight Capital Group Inc. (NYSE:KCG) closed on August 27, 2012, at $2.78 per share, significantly below its current 52 week High of $14.00 per share.

Those who purchased shares of Knight Capital Group Inc. (NYSE:KCG) shares between February 29, 2012, and August 1, 2012, you have certain options and there are strict and short deadlines running. Deadline: October 16, 2012. NYSE:KCG investors should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com