Securities Fraud Class Action Against Refco, Inc. is Filed by Scott+Scott, LLC

COLCHESTER, Conn., Oct. 12  /PRNewswire/ -- Scott+Scott, LLC (http://www.scott-scott.com/) represents investors in a securities class action filed today in the United States District Court for the Southern District of New York against Refco, Inc. ("Refco") (NYSE:RFX) and certain of its officers and directors.  Refco securities purchasers between August 11, 2005 and October 10, 2005, inclusive (the "Class Period") are putative class members. Refco provides execution and clearing services for exchange-traded derivatives, and brokerage services in the fixed income and foreign exchange markets in the United States, Bermuda and the United Kingdom.  Refco went public via an initial public offering in August 2005.

If you purchased Refco securities during the Class Period and wish to serve as lead plaintiff, you must so move the Court no later than 60 days from October 11, 2005.  If you wish to discuss this action or have questions concerning your rights as a class member, please contact Scott+Scott partner Neil Rothstein (800/332-2259, cell 619/251-0887 or ).  Scott+Scott will provide class members with case materials, answer all questions regarding participation and rights and assist with other services the firm provides.  There is no cost or fee to class members.

The complaint Scott+Scott filed today alleges that during the Class Period, Refco and certain of its officers and directors violated provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, causing investors to purchase stock pursuant to registration statements containing materially false and misleading statements.  Specifically, the complaint alleges that during the Class Period, defendants knew and concealed (a) deficient and defective internal operational controls in existence at the Company for a period of several years before the commencement of the Company's IPO and (b) that the Company's deficient and defective internal operational controls concealed the true picture of the Company's financial progress and business prospects, among other allegations.

According to the complaint, the truth began to be revealed on October 10, 2005, when the Company delivered shocking and devastating revelations of fraud, warning investors that defendant Phillip R. Bennett, CEO, had been ordered to take a leave of absence after discovering it was owed $430 million by an entity controlled by Bennett.  Moreover, the Company determined that prior financial statements for the fiscal years ending 2002 through 2005 and for May 2005 should not be relied on.  In response to these announcements, the price of the Company's stock dramatically declined.  Today, Refco's stock price closed at $13.85, or 51.5% lower than last Friday's close prior to the announcements.

The plaintiff is represented by Scott+Scott, LLC, which has significant experience in prosecuting investor class actions.  The firm dedicates itself to client communication and satisfaction and currently is litigating major securities, antitrust and employee retirement plan actions throughout the United States.  The firm represents pension funds, charities, foundations, individuals and other entities worldwide.  Current cases the firm is litigating and/or investigating include: Mercury Interactive; DHB Industries;

Halliburton; Diebold; Human Genome Sciences; and Lexmark International Inc., among others. 

DATASOURCE: Scott+Scott, LLC



CONTACT: Neil Rothstein of Scott+Scott, LLC , 1-800-332-2259,

cell: [phone], 



Web site:  http://www.scott-scott.com/ 

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