Global Brokerage (FXCM) has until early August to answer in lawsuit, combining four actions
The legal battles involving Global Brokerage Inc will continue in the coming summer and fall, with the deadline for defendants’ answers set for August 3, 2017.
As FinanceFeeds has already reported, a judge at the U.S. District Court for the Southern District of New York, last week issued an order approving the combination of four of the cases against Global Brokerage Inc (NASDAQ:GLBR), formerly known as FXCM Inc.
Now we have obtained more information on the matter, including the timetable for the combined actions.
To begin with, let’s say which are the four consolidated cases:
- 1:17-cv-01028 (Blinn v. FXCM Inc. et al);
- 1:17-cv-00955 (Zhao v. FXCM Inc. et al);
- 1:17-cv-00916 (Khoury et al v. FXCM Inc. et al);
- 1:17-cv-02506 (683 Capital Partners, LP et al v. Global Brokerage, Inc. f/k/a FXCM Inc. et al.).
Due to the combination of cases, the Judge has set a deadline of June 19, 2017, for filing the amended pleadings. Then, the motions are expected not later than August 3, 2017. Answers by the defendants – FXCM Inc (now known as Global Brokerage), Robert Lande, and Dror (Drew) Niv, are also due by August 3, 2017.
The deadline for responses to the motions is September 18, 2017, whereas replies (responses by the plaintiffs to defendants’ answers) are due by October 18, 2017.
The timetable (which is subject to possible changes) indicates that the legal procedures against FXCM associated with the findings by US financial regulators published in February this year are just beginning. Furthermore, there are other legal actions against the company with regards to the same events. One example is Raul v. Sakhai et al case (# 1:17-cv-02035). The number of defendants in this legal action is impressive – 13, including Global Brokerage Inc and FXCM COO David Sakhai. The plaintiff is represented by Joshua M. Lifshitz, Lifshitz & Miller.
Meanwhile, Global Brokerage Inc is having trouble remaining listed on NASDAQ due to the size of its market capitalization. On May 2, 2017, Nasdaq informed Global Brokerage Inc that during the preceding 30 consecutive business days the market value of the company’s publicly held shares was below $15 million. This means it was insufficient to meet the requirement for continued listing under The Nasdaq Global Select Market listing rules. The market value of the company’s publicly held shares has to surpass $15 million for ten consecutive business days until October 30, 2017, in order for Global Brokerage to avoid delisting.