Global Brokerage, Drew Niv and 16 other ex-FXCM Inc top officers gear up for “mega lawsuit” argument
The oral argument is scheduled for March 1, 2018, at the New York Southern District Court.
Further to the announcement from earlier this month about Global Brokerage Inc (OTCMKTS:GLBR), formerly known as FXCM Inc, securing a Court order confirming its prepackaged plan of reorganization and the occurrence of the effective date of the plan, the legal proceedings against the company and its former top-rank officers are now continuing.
In fact, Global Brokerage and a number of its former employees are now gearing up for an oral argument in the so-called “mega lawsuit” – a class action on behalf of investors in the public securities of FXCM Inc. The oral argument is scheduled for March 1, 2018 (that is, later this week) at the New York Southern District Court.
Paul Richard Bessette, of King & Spalding, has notified the Court that he will appear on behalf of William Ahdout, James Brown, Robin E. Davis, Margaret Deverell, Dror Niv, FXCM Inc., Global Brokerage, Inc. f/k/a FXCM Inc., Kenneth Grossman, Arthur Gruen, Robert Lande, Eric LeGoff, Janelle G Lester, Ornit Niv, Bryan Reyhani, David Sakhai, Nicola Santoro, Jr., David S Sassoon, Ryan Silverman, Eduard Yusupov. That is, the list of defendants features the company itself, as well as 17 of its ex-top ranking employees.
The “mega lawsuit” is brought on behalf of a putative class consisting of all persons and entities who purchased or otherwise acquired publicly traded FXCM securities from March 15, 2012 to February 6, 2017. The complaint alleges that FXCM misled its clients, investors and the regulators by claiming that the company’s “No Dealing Desk” (NDD) platform would provide its customers with a Forex trading platform that was free of conflicts of interest. As a result of the investigations by the CFTC and NFA, the allegations and penalties announced in February 2017, the price of FXCM’s stock dropped sharply, losing more than half of its value and damaging investors.
The complaint alleges that each of the individual defendants directly participated in the management of the company and was aware of or recklessly disregarded the fact that the false and misleading statements were being issued concerning the company.
Let’s note that Paul Bessette specializes in defending companies and individuals in securities and shareholder litigation, as well as in SEC investigations and enforcement actions.
The case is captioned In re Global Brokerage, Inc. f/k/a FXCM Inc. Securities Litigation (1:17-cv-00916).