NY Court receives another complaint against FXCM

The volume of legal actions targeting FXCM in the United States has been exponentially growing since US regulators announced findings into the unfair business practices of the Forex broker in February this year.

The Rosen Law Firm was the first to react then and to set the stage for a class action securities lawsuit against FXCM. There was nothing astonishing that the firm managed to snatch the leading role in the lawsuit against the broker and a number of its principals that combines four similar legal actions at the New York Southern District Court.

There is a new case (1:17-cv-03700) filed against FXCM in this court. The plaintiff is Ms Doris Murrah, represented by Christopher J. Gray, Law Office Of Christopher J. Gray, P.C. On May 17, 2017, an amended complaint was submitted against Global Brokerage Inc (NASDAQ:GLBR), FXCM Holdings, Forex Capital Markets LLC, William Ahdout and Dror Niv.

We do not have the details about the complaint but the case has been referred to Judge Ronnie Abrams as possibly related to 1:17-cv-00916-RA. The latter is the caption for the “mega lawsuit” combining the four securities lawsuits against FXCM and led by the Rosen Law Firm. This referral, along with the fact that the nature of the suit is labelled as “Securities/Commodities/Exchange” indicates that Murrah v. Forex Capital Markets, LLC et al is yet another securities action against FXCM related to the February 2017 events.

In its report for the first quarter of 2017, Global Brokerage Inc (NASDAQ:GLBR) provided an update on legal actions against it, saying that “in response to the Company’s announcement on February 6, 2017 regarding settlements with the NFA and the CFTC, several putative securities class action lawsuits have been filed against Global Brokerage, Inc., Dror Niv, and Robert Lande in the U.S. District Court for the Southern District of New York.” Apparently, Global Brokerage was talking of the combined legal actions against it. The company reiterated its intentions to “vigorously defend against the claims asserted in these actions”.

In the report, Global Brokerage also mentioned another case (# 1:17-cv-02729), filed by a customer of US on April 14, 2017. This is a class action on behalf of customers who traded on the “No Dealing Desk” platform during the 2010-2016 period. The plaintiffs claim that the customers were harmed as a result of FXCM’s relationship and use of Effex Capital, LLC as a liquidity provider. The class action alleges (inter alia) breach of contract and breach of fiduciary duty by US and other related claims against Global Brokerage (FXCM), FXCM Holdings, Dror Niv, William Ahdout, Effex and its principal.