Legal actions against FXCM Inc (Global Brokerage Inc) mark progress
Over the past 24 hours, there were 63 updates regarding cases against FXCM Inc (Global Brokerage Inc) at the New York Southern District Court.
Soon after the US regulators announced their findings into business practices of Forex broker FXCM that misled clients, regulators and shareholders about its NDD model and certain holdings for several years, law firms started targeting disgruntled investors and preparation for class action lawsuits against FXCM commenced.
Several of these legal actions have marked some progress. The Electronic case filing (ECF) system of the New York Southern District Court shows there were massive 63 updates with relation to cases against FXCM Inc, now known as Global Brokerage Inc (NASDAQ:GLBR), during the past 24 hours.
The 63 updates concern the following four cases:
- Khoury et al v. FXCM Inc. et al (1:17-cv-00916);
- 683 Capital Partners, LP et al v. Global Brokerage, Inc. f/k/a FXCM Inc. et al (1:17-cv-02506);
- Blinn v. FXCM Inc. et al (1:17-cv-01028);
- Zhao v. FXCM Inc. et al (1:17-cv-00955).
Below you can see their basic description:
- Khoury et al v. FXCM Inc. et al (1:17-cv-00916)
Defendants: FXCM Inc, Dror Niv, Robert Lande.
Plaintiff: Tony Khoury
Represented By: Phillip C. Kim, The Rosen Law Firm P.A.
- 683 Capital Partners, LP et al v. Global Brokerage, Inc. f/k/a FXCM Inc. et al (1:17-cv-02506)
Defendants: FXCM Inc, Dror Niv, Robert Lande.
Plaintiff: 683 Capital Partners, LP.
Represented By: Phillip C. Kim, The Rosen Law Firm P.A.
- Blinn v. FXCM Inc. et al (1:17-cv-01028)
Defendants: FXCM Inc, Dror Niv, Robert Lande.
Plaintiff: David Blinn (Individually and on Behalf of All Others Similarly Situated 142 East Drive, Massapequa, NY 11758).
Represented By: Shannon Lee Hopkins, Levi & Korsinsky, LLP
- Zhao v. FXCM Inc. et al (1:17-cv-00955)
Defendants: FXCM Inc, Dror Niv, Robert Lande.
Plaintiff: Ying Zhao
Represented By: Joseph Alexander Hood, II Pomerantz LLP and Jeremy Alan Lieberman, Pomerantz LLP.
A number of the updates concern motions to consolidate the cases, which is a normal procedure when several cases have a common aim and consolidating them can reduce expenses for the court and the sides. Such a motion has been filed with regards to the four cases mentioned above. The action may result in a single judgment or, sometimes, in separate judgments.
In its annual report for 2016, FXCM Inc said it was aware of three securities class action lawsuits filed against it, Dror Niv, and Robert Lande in the U.S. District Court for the Southern District of New York with regards to the US regulatory findings published in February this year. These cases are (1) Khoury v. FXCM Inc. , Case No. 1:17-cv-916; (2) Zhao v. FXCM Inc. , Case No. 1:17-cv-955; and (3) Blinn v. FXCM Inc. , Case No. 1:17-cv-1028. The broker plans to “vigorously defend” itself against the claims in these legal actions.
These cases comprise three of the four mentioned above. The fourth has hedge fund 683 Capital Partners, LP as its plaintiff and FinanceFeeds has provided a detailed report into it earlier. All of the plaintiffs are seeking compensations – if FXCM fails to settle or win the lawsuits, then the bill will be heavy.
It seems that the real challenges for Global Brokerage Inc have just begun on the legal front after Forex Capital Markets LLC had a permanent membership and principal bar placed against its name by US regulators in March this year. The broker has exited the US market and has sold its US retail FX client accounts to GAIN Capital after the settlements with US regulators.
