Judge schedules pretrial conference in latest case against FXCM for August 11, 2017

Maria Nikolova

The pretrial conference gets scheduled as the volume of legal actions against FXCM at the New York Southern District Court continues to grow.

FinanceFeeds has been keeping its readers up to date with the latest developments around legal issues engulfing FXCM US business, following the company settlements with the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC) early in February this year.

The latest legal action filed against FXCM at the New York Southern District Court is captioned Murrah v. Forex Capital Markets LLC et al (1:17-cv-03700). The amended complaint against Global Brokerage Inc (NASDAQ:GLBR), FXCM Holdings, Forex Capital Markets LLC, William Ahdout and Dror Niv was submitted on May 17, 2017, with the case rapidly progressing through the court.

According to the most recent court updates, on May 25, 2017, Judge William H Pauley, III signed an order setting the date for the initial pretrial conference for August 11, 2017.

As FinanceFeeds has reported, the affidavits of service of complaints were submitted with the court on May 23, 2017. The affidavits concern FXCM Holdings, LLC, and Forex Capital Markets, LLC. Both companies have until June 9, 2017, to file their answers.

The Murrah case could not join ”the “mega lawsuit” against FXCM combining four other lawsuits against the broker and a number of its principals. On May 22, 2017, Judge Ronnie Abrams ruled that the case Murrah v. Forex Capital Markets LLC et al was not related to 17-cv-916 RA.

On top of the above mentioned lawsuits against FXCM, the broker faces several others at the New York Southern District Court, including the one filed by Vantalie Nguyen (1:17-cv-02729) on April 14, 2017. This is a class action on behalf of customers who traded on the broker’s “No Dealing Desk” platform during the 2010-2016 period. The plaintiffs allege that these customers were harmed due to FXCM’s relationship with Effex Capital, LLC as a liquidity provider. The class action claims (inter alia) breach of contract and breach of fiduciary duty by US and other related claims against Global Brokerage (FXCM), FXCM Holdings, Dror Niv, William Ahdout, and Effex and its principal.

Global Brokerage insisted in its report for the first quarter of 2017 that it will defend itself against these accusations too.

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