Global Brokerage (FXCM) has until early August to answer in lawsuit, combining four actions

Maria Nikolova

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.

Read this next

Retail FX

Scope Markets doubles down on Middle East: AED accounts ahead of GCC Equity CFDs

“To bolster our footprint in this thriving ecosystem, it was a strategic imperative to integrate AED accounts and introduce a slew of CFD equities reflecting the GCC landscape. This not only appeases the domestic audience but also beckons international investors aspiring to delve into these dynamic markets.”

Market News

Navigating the Complex World of Central Banks: Inflation, Rates, and Economic Growth

Inflation continues to loom large over both European households and businesses, leaving central banks in the region grappling with a prolonged battle to reach their target levels.

Institutional FX

QUODD partners with Blue Ocean for real-time after-hours market data

“Investors are increasingly global, and market data providers like QUODD are facilitating access to data that enables global traders to invest in US markets. Partnering with top-tier fintech providers like QUODD allows Blue Ocean to extend its reach to a new demographic of investors.”

Retail FX

Moomoo Canada launches pro-level tools, free Level 2 data, and affordable US stock trading

“Being a real social trading platform in Canada, we cultivate a unique ecosystem helping our users grow… The world is eager to hear the voice of Canadian individual investors, and we look forward to more contributions from Canadian investors in our moo community.”

Industry News

CFTC sues Patrick Wonsey for $3.4 million FX and binary options scam

Wonsey allegedly diverted these monies for personal use and orchestrated payouts to other pool participants, mirroring a classic Ponzi scheme.

Digital Assets

MoneyGram to launch non-custodial digital wallet

“In collaboration with SDF, MoneyGram has been working towards creating equitable access to the global financial system. With the introduction of this non-custodial digital wallet, we are further emphasizing our commitment to providing consumers with a bridge to the digital economy while upholding our brand’s integrity for speed, efficiency, and trust.”

Digital Assets

Binance exits Russia as part of crypto exchange’s compliance strategy

“As we look toward the future, we recognize that operating in Russia is not compatible with Binance’s compliance strategy. We remain confident in the long-term growth of the web3 industry around the world and will focus our energy on the 100+ other countries in which we operate.”


ECNG Digital taps iDenfy for AI-driven ID verification for user onboarding

“In the realm of virtual currency exchange and payment services, the real challenge lies in balancing fraud prevention with swift identity verification. Our mission is to guide ECNG Digital on this path, ensuring precision while accelerating understanding.”

Retail FX

Verification On eToro Explained: Step By Step Guide

Traders Union emphasizes the importance of eToro’s verification process as a pivotal step in ensuring a safe and compliant online trading experience.