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