Lawyer denies having access to Interactive Brokers’ confidential source code materials

Maria Nikolova

William S. Shepherd says accusations made against him over accessing certain materials about Interactive Brokers are unfounded.

A 75-year old member of the bar of the state of Texas has filed a Declaration with the Connecticut District Court as he tried to rebuff accusations against him about accessing confidential materials in a lawsuit targeting online trading major Interactive Brokers Group, Inc. (IEX:IBKR). In the document seen by FinanceFeeds, William S. Shepherd insists he has not had access to any confidential materials in the case.

The lawsuit in question was brought by a former client of the brokerage – Robert Scott Batchelar. He and a purported class of customers of Interactive Brokers LLC claim they were harmed by alleged “flaws” in the computerized system used by the brokerage to close out (i.e., liquidate) positions in customer brokerage accounts that have margin deficiencies. The case targets Interactive Brokers LLC, Interactive Brokers Group, Inc., and Thomas A. Frank.

The parties in this case dispute whether Plaintiff’s counsel should be permitted to use the information obtained from review herein of Defendants’ Source Code, including testimony provided by a Source Code Qualified Person, in a separate matter, proceeding, action, investigation or arbitration involving any of the Defendants and a claimant other than Plaintiff. Put bluntly, Interactive Brokers would like to make sure that whatever information regarding its trading systems is revealed, it stays within this particular lawsuit and cannot be used in another lawsuit.

Earlier this month, the brokerage voiced its concerns that confidential discovery produced herein may be used for purposes other than the prosecution of this litigation and that Plaintiff’s counsel would be consulting with attorneys who have not appeared as counsel of record in this case regarding this litigation. According to Interactive Brokers, in a confidential arbitration involving Interactive Brokers LLC and customers other than Batchelar, counsel for the customers sought all discovery produced in this action. The name of William S. Shepherd was then mentioned.

In the latest Court filings in this case, William S. Shepherd seeks to dismiss the allegations made by Interactive Brokers. He says:

“I have not had access to any of the documents produced by Defendants in the above-styled matter which are stamped Confidential, Attorney’s Eyes Only, Source Code, or similar derivative. Because I have not had access to any confidential information of Defendants, I do not have the ability to disclose it to anyone and I have not disclosed any such Information.

I am not counsel of record for any plaintiff in any action pending against Defendants”.

“I am 75 years of age and am receiving treatment for medical conditions which for the past year has prevented me from active involvement in this or any other cases”, William S. Shepherd notes.

The case continues at the Connecticut District Court.

Read this next

Digital Assets

Europe bans crypto payments to Russians as €10K cap scrapped

The European Union is taking further steps to sanction Russia after the recent developments surrounding its invasion of Ukraine.

Digital Assets

Mt. Gox creditors to get their funds through Bitstamp, other exchanges

The distribution of funds to creditors of the defunct crypto exchange Mt. Gox is set to kick off as the business’s Japanese bankruptcy trustee released a memo updating them of a new function and important deadlines.

Institutional FX

Tradeweb’s trading volumes hit $1.20 trillion per day in September

Tradeweb Markets, the online fixed-income trading platform, today reported its operational metrics for the month of September 2022, which has seen continued strong trading volumes so far. A frenzy that, at this pace, puts it on track to set a new record.

Crypto Insider

Cryptocurrency Spoofing: Why Should Investors Care About It?

Investors don’t just care about making more money. They care about their safety and security, too. This is observable in cryptocurrency, where consumers always protect their financial interests. People have developed this habit of fear of falling victim to possible scams and frauds.

Retail FX

FSCS closes London Capital & Finance (LCF) scandal after three years

The Financial Services Compensation Scheme (FSCS) has provided a final date for closing the scheme to compensate investors who lost money in the London Capital & Finance scandal, namely on 31 October 2022.

Institutional FX

Cboe reports highest ADV for FX volume in two years

Cboe’s institutional spot FX platform today announced its trading volume for the month ending September 2022, which marks its third-highest month ever.

Executive Moves

Investall hires ex-DriveWealth Steve Cortright as CEO

Investall is an AI-driven mobile trading platform for personal finance and investing that delivers AI-driven trading for thousands of equities and major cryptocurrencies.

Digital Assets

SIX integrates CryptoCompare’s cryptocurrency data feed

SIX will provide digital asset data to its clients via the same delivery channels as its leading reference, pricing, corporate actions, regulatory, tax and ESG data.

Digital Assets

CME Group to launch reference rates and indices on Avalanche (AVAX), Filecoin (FIL), and Tezos (XTZ)

Several leading crypto exchanges and trading platforms will provide pricing data for these new benchmarks, starting initially with Bitstamp, Coinbase, Gemini, itBit, Kraken, and LMAX Digital.