Former FXCM clients move to consolidate legal actions
Plaintiffs in the class action lawsuits Cardi et al v. FXCM, Inc. et al (1:17-cv-04699) and Nguyen v. FXCM Inc. et al (1:17-cv-02729) seek to consolidate their legal actions.
As FinanceFeeds reported in June, more related actions have been hitting FXCM and Effex Capital, the company implicated in the broker US exit. There have been some court updates in this respect, as on Thursday, former FXCM clients moved to consolidate their actions against the broker.
As per filings submitted with the New York Southern District Court, plaintiffs in the cases Cardi et al v. FXCM, Inc. et al (1:17-cv-04699) and Nguyen v. FXCM Inc. et al (1:17-cv-02729) seek to consolidate their legal actions. The Motion to Consolidate, seen by FinanceFeeds, notes that both actions “present similar factual and legal issues, as they both involve the same subject matter, Class, Defendants, and present, for the most part, the same legal issues arising from the same facts and circumstances”.
Let’s recall that the Cardi and the Nguyen cases are brought by former customers of FXCM who claim to have suffered damages as a result of the misleading claims concerning its “No dealing desk” model.
The Cardi et al v. FXCM, Inc. et al (1:17-cv-04699) case was accepted as related to the Nguyen case in late June. The attorneys for the plaintiffs had earlier submitted a statement saying that both actions are securities/commodities/exchange actions with a similar fact pattern and the same defendants, including Global Brokerage Inc (NASDAQ:GLBR), f/k/a FXCM Inc, Forex Capital Markets LLC, Global Brokerage Holdings, Drew Niv, William Ahdout, Effex Capital and John Dittami.
Importantly, in line with previously announced plans, Vantalie Nguyen and FXCM have agreed to stay the proceedings against the so-called FXCM defendants: Global Brokerage Inc (NASDAQ:GLBR), Forex Capital Markets LLC, Global Brokerage Holdings, Drew Niv, and William Ahdout, pending arbitration. The stay is based on the fact that Nguyen is a former client of FXCM and that the Client Agreement contained an arbitration clause.
FXCM did mention briefly the cases brought by Vantalie Nguyen and Arthur Cardi in its SEC filing for the second quarter of 2017. It confirmed the stay of the Nguyen case against the so-called Global Brokerage defendants pending resolution of an individual arbitration proceeding. The company also referred to the case by Cardi as one “asserting substantially the same claims”. Global Brokerage and other defendants “intend to vigorously defend against the claims asserted against them by these customers”, the SEC filing says.