NY Court orders stay of ex-clients’ case against FXCM

Maria Nikolova

Judge Paul A. Crotty has ordered that all proceedings related to the claims against the FXCM Defendants in the case brought by former clients of the broker are stayed.

fxcm

Judge Paul A. Crotty of the New York Southern District Court has ordered that proceedings against the FXCM Defendants in a case brought by former clients of the broker are stayed.

The document filed on October 26, 2017, states that Vantalie Nguyen, one of the plaintiffs, and the FXCM Defendants – including Global Brokerage Inc (NASDAQ:GLBR), formerly known as FXCM Inc, Forex Capital Markets LLC, Global Brokerage Holdings, Drew Niv, and William Ahdout, will submit to individual arbitration the claims in the Complaint, including issues related to the validity of any arbitration agreement or the arbitrability of such claims. All proceedings related to all Plaintiffs’ claims as against the FXCM Defendants are stayed until resolution of the individual arbitration between Plaintiff Nguyen and the FXCM Defendants.

Regarding the other plaintiffs, the Judge said that all individual arbitration proceedings related to claims asserted by Plaintiffs Cardi, Randhawa, Govers, Plunger, and Tadrous are stayed until resolution of the individual arbitration between Plaintiff Nguyen and the FXCM Defendants.

The case is captioned Nguyen v. FXCM Inc. et al (1:17-cv-02729) and targets the FXCM defendants, as well as Effex Capital and John Dittami. This is a class action against Defendants’ for breaches of fiduciary duty and duty of best execution, the aiding and abetting thereof, breach of contract, breach of the implied covenant of good faith and fair dealing, gross negligence, unjust enrichment, and violations of the Commodities Exchange Act, 7 U.S.C. § 1 et seq., on behalf of all customers of FXCM who, between March 1, 2010 and February 6, 2017, placed trade orders through FXCM’s “No Dealing Desk” platform while FXCM publicly maintained that FXCM had no conflict of interest in the outcome of that trade.

On Saturday, September 30, 2017, the plaintiffs filed a new, amended complaint, with the 77-page document including 14 counts. Among these counts are accusations of breaking the laws of five States.

The Plaintiffs seek, inter alia, award of damages against Defendants for their violations of the CEA, together with prejudgment interest at the maximum rate allowable by law; as well as awarding plaintiffs damages against Defendants for their violations of common law and state consumer statutes.

The Plaintiffs also seek that the Court imposes a constructive trust on all monies wrongfully obtained by Defendants; and that the Court directs Defendants to identify the victims of their conduct and pay them restitution and disgorgement of all monies acquired by Defendants by means of any act or practice declared by this Court to be wrongful.

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