An investigation for shareholder in Virtus Investment Partners Inc shares over potential wrongdoing at Virtus Investment Partners Inc was announced and NASDAQ:VRTS stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 12/22/2015 -- An investigation for shareholders in shares of Virtus Investment Partners Inc was announced over potential breaches of fiduciary duties by certain directors at Virtus Investment Partners Inc .
Shares of Virtus Investment Partners Inc (NASDAQ:VRTS) declined from $223.69 per share in August 2014 to as low as $97.37 per share on September 29, 2015.
Investors who purchased shares of Virtus Investment Partners Inc (NASDAQ:VRTS) have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The investigation by a law firm concerns whether certain Virtus Investment Partners officers and directors breached their fiduciary duties and caused damage to the company and its shareholders.
In February 2015 a lawsuit was filed against Virtus Investment Partners Inc. The plaintiff claimed 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 said 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.
On November 16, 2015, the U.S. Securities and Exchange Commission ("SEC") announced that Virtus Investment Partners Inc. will pay $16.5 million to settle charges that it touted false performance claims to boost an investment portfolio strategy. An SEC investigation found that Virtus Investment Partners Inc. publicized an overstated performance track record as received from F-Squared Investments, which had managed the strategy. Andrew Ceresney, director of the SEC enforcement division, stated, "Virtus accepted F-Squared's historical performance misrepresentations at face value and ignored red flags that called these statements into question." Virtus falsely stated in client presentations, marketing materials, and SEC filings that the portfolio strategy had a performance history dating back to April 2001 and outperformed the S&P 500 Index for several years. In a separate SEC enforcement action last year, F-Squared admitted to touting a track record it presented as real when it was actually hypothetical and inflated.
On December 18, 2015, NASDAQ:VRTS shares closed at $118.40 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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