NY Court to review motions to create “mega lawsuit” against FXCM

Maria Nikolova

A conference in five actions against the broker will be held on May 5, 2017.

FinanceFeeds has been keeping its readers updated on the legal actions against FXCM, following the findings published by US regulators in February this year about the broker misleading its customers and regulators about its business practices, holdings in other companies and its execution model.

A number of securities lawsuits have been filed by affected investors and are currently marking progress. In its latest annual report, FXCM Inc, which is currently known as Global Brokerage Inc (NASDAQ:GLBR), said it was aware of three similar lawsuits against it with regards to February 2017 events. The company said it would vigorously defend itself against these actions. Meanwhile, as expected the volume of such actions against the company has grown.

The latest news with regards to the legal action against FXCM in the US comes from the New York Southern District Court which has issued an order granting a motion for a conference concerning several of the lawsuits against the broker.

Before the Court are five related actions: Khoury v. FXCM Inc. (No. 17-cv-916), Zhao v. FXCM Inc. (No. 17-cv-955), Blinn v. FXCM Inc. (No. 17-cv-1028), Raul v. Sakhai (No. 17-cv-2035), and 683 Capital Partners, LP v. Global Brokerage, Inc. (No. 17-cv-2506).

A conference in these actions shall be held on May 5, 2017 at 1:30 p.m. in Courtroom 1506 of the U.S. District Court for the Southern District of New York. At this conference, the Court shall address the pending motions to consolidate the related actions, to appoint lead plaintiff(s), and to appoint lead plaintiffs’ counsel. The Conference is set to take place before Judge Ronnie Abrams.

FinanceFeeds has already reviewed most of these actions, including the one filed by hedge fund 683 Capital Partners. We haven’t yet taken a look at Raul v. Sakhai (No. 17-cv-2035). This case, filed on March 21, 2017, also targets FXCM over violations of the Securities Exchange Act. The plaintiff is Jonathan Raul, with the number of defendants at 13, including Global Brokerage Inc and FXCM COO David Sakhai. The plaintiff is represented by Joshua M. Lifshitz, Lifshitz & Miller.

Consolidation of cases is a normal procedure when multiple cases have a common aim and consolidating them can cut expenses for the court and the sides. The combined action may lead to a single judgment or, sometimes, in separate judgments.

Read this next

Retail FX

Investors from Cyprus and Dubai acquire ‘significant stake’ in M4Markets

Seychelles-regulated brokerage firm M4Markets firm has picked up some investment from Cyprus and Dubai based investors in a new funding round that it will be using to grow its business.

Executive Moves

UAE broker Amana elevates Amr Masry to sales director

Amr Masry has been promoted to a new senior role at Amana Capital, becoming the group’s newest Sales Director, following a successful tenure with the UAE-based FX and CFDs broker.

Executive Moves

TopFX promotes Omar Al-Janabi to head of sales and business development

Prime brokerage firm TopFX has strengthened its Middle East operations with the promotion of Omar Al-Janabi, who is taking on an expanded role as global head of sales and business development.

Retail FX

Plus500 says 2022 revenue to be ‘significantly’ ahead of analysts’ estimates

Israeli-based, but London-stock market listed Plus500 said it expects annual revenue and earnings to be ahead of analysts’ estimates even as trading levels normalised from record volumes in the first quarter.

Digital Assets

Crypto derivatives giant BitMEX launches spot market

Crypto exchange BitMEX is looking to branch out of its singular focus on crypto derivatives with a suite of new product offerings. Although derivatives are to remain at the heart of BitMEX’s business, the popular platform will add spot crypto trading as it aims to aggressively grow their user base.


PrimeXM reports mixed trading volumes for April

PrimeXM has reported weaker trading volumes for April 2022, in line with other institutional and retail platforms that saw the activity of their clients dropped compared to a month earlier.

Digital Assets

DLT Finance approved by BaFin to support brokerage and custody of digital assets

DLT Finance is already partnered with big names within the digital asset space, including Kraken, Bitstamp, B2C2, and Bittrex.

Institutional FX

LUKB taps vestr to launch actively managed products, AMCs

The partnership with vestr goes to show the growing importance of digitising the active investment management space.

Digital Assets

Jewel taps Tokeny to launch stablecoin-as-a-service solution on Polygon

Jewel aims to offer a stablecoin-as-a-service solution to other digital asset and financial institutions B2B, allowing those businesses to provide cheaper, easier and near real time payments with stablecoins issued and redeemable directly at the bank level at Jewel.