Effex Capital seeks further extension of time to respond to complaint by FXCM customers

Maria Nikolova

Effex Capital and its CEO John Dittami seek another extension in the Nguyen v. FXCM Inc et al case – a class action on behalf of FXCM’s customers who traded on the “No Dealing Desk” platform during the 2010-2016 period.

The New York Southern District Court continues to deliver updates regarding the legal actions against FXCM. The law firm representing John Dittami and Effex Capital, the company implicated in the exit of FXCM from the US retail FX market, has requested another extension of time to respond to the complaint in the Nguyen v. FXCM Inc. et al case.

A quick reminder – the case in question is a class action on behalf of FXCM’s customers who traded on the “No Dealing Desk” platform during 2010-2016. The plaintiffs, lead by Vantalie Nguyen, allege that they suffered harm as a result of FXCM’s relationship with Effex Capital, LLC as a liquidity provider. The class action has as defendants Global Brokerage Inc (NASDAQ:GLBR), formerly known as FXCM Inc, FXCM Holdings, Dror Niv, William Ahdout, as well as Effex and its principal.

According to a Letter Motion, seen by FinanceFeeds, lawyers for Effex and its CEO are now requesting further extension of time to respond to Plaintiff’s complaint to September 1, 2017. This is the second time Effex and its CEO request extension – the Judge assigned to the case had already granted them one to July 14, 2017.

The Plaintiff’s counsel has consented the relief, which raises the chances that it will be granted.

Whereas the lawyers for Effex and its CEO mention no reason for the extension request, we can speculate that this has to do with another case around FXCM – Effex Capital, LLC et al v. National Futures Association et al. Effex is targeting NFA and is asking for a preliminary injunction against the Association that should see it remove a news release about the settlement between US authorities and FXCM. Effex also requests that NFA removes the complaint against FXCM, involving Effex, and/or amends it accordingly.

The briefing schedule on the motion for preliminary injunction has been extended, giving time to NFA to respond by July 24, 2017. An oral argument hearing is reset for August 9, 2017.

We can speculate (only speculate) that Effex Capital and Mr Dittami would like to base their further action on the developments in their lawsuit against NFA. If NFA removes the complaint against FXCM from its website, this will undermine the evidentiary support for the Nguyen case.

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