NY Judge approves consolidation of four FXCM class actions

Maria Nikolova

Hedge fund 683 Capital Partners LP secures leading plaintiff role, whereas The Rosen Law Firm gets to be lead class counsel.

Further to FinanceFeeds’ article about the motion by a number of plaintiffs to combine their class actions against Global Brokerage Inc (NASDAQ:GLBR), formerly known as FXCM Inc, there has been an Order by Judge Ronnie Abrams, who is assigned to the cases.

Judge Ronnie Abrams, from the U.S. District Court for the Southern District of New York, has issued an order approving the combination of four of the cases against FXCM, according to a report from Law360. In addition, The Rosen Law Firm has been named lead class counsel, whereas its clients Shipco Transport Inc. and 683 Capital Partners LP have been picked as lead plaintiffs.

The choice of the lead plaintiffs is attributed to the fact that they had the biggest financial stake in the case. As FinanceFeeds has reported earlier, 683 Capital Partners, LP is a private investment fund founded as a Delaware limited partnership. The gross asset value of the fund at the end of March 2017 was $853,744,010.

A 13F filing with the SEC, submitted by 683 Capital Management LLC for the quarter to December 31, 2016, shows a holding in FXCM. The principal amount is 17,000,000 shares, whereas the value is $9,180×1,000.

The official position by FXCM regarding the legal actions against it is contained in its annual report for 2016. The firm’s results for the first quarter of 2017 have yet to be announced and we expect to see more details about the legal actions progress and eventual costs associated with them, as these results become public. In its previous report, FXCM stated it was aware of three securities class actions filed against it in the U.S. District Court for the Southern District of New York and noted that it would decisively defend itself.

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

Read this next

Retail FX

Traders Union Names RoboForex the Best Forex Broker of 2023

In a recent update, Traders Union has unveiled its highly anticipated ranking of the Best Forex Brokers for 2023, continuing its tradition of providing valuable information to traders.

Digital Assets

PayPal introduces its stablecoin to Venmo users

PayPal has revealed that its PYUSD stablecoin, designed for payments and transfers, is now accessible through Venmo. This stablecoin, fully backed by US dollar deposits and similar assets, provides selected users with a regulated, dollar-denominated digital currency.


Stagflation Speculation: Is the UK Economy Heading for Uncharted Waters?

Amid rising concerns about a potential recession, the term “stagflation” is increasingly being used to describe the UK’s current economic scenario, characterized by conflicting indicators such as high inflation and stagnant growth.

Industry News

Exness Becomes Titanium Sponsor for 6th Annual Forex Expo in Dubai.

Multi-asset broker Exness has been named the Titanium Sponsor for the 6th edition of the Forex Expo in Dubai, further cementing its role as a key player and supporter in the trading industry.

Digital Assets

Mt. Gox victims to wait another year for repayments

Nobuaki Kobayashi, the trustee responsible for managing the assets of the now-defunct Mt. Gox Bitcoin exchange, has announced an extension of the deadline for repaying the exchange’s creditors.


Sumsub launches Non-Document Verification in the UK: Client onboarding in 5 seconds

Sumsub’s partnership with OneID introduces Non-Document Verification, enabling near-instant identity verification through official bank records while ensuring compliance with UK regulations.

Industry News

CFTC fines Advantage Futures $395,000 for 12.8 million unmonitored trades

Collectively, these failures by Advantage resulted in over 12.8 million cleared contracts not being processed or surveilled from July 2018 to June 2022. This accounts for nearly 1.5% of the trading volume by Advantage’s customers during that four-year period.

Industry News

SEC doubles down on fund names rule: “Growth”, “Value”, “ESG” better watch out

“As the fund industry has developed over the last two decades, gaps in the current Names Rule may undermine investor protection. Today’s final rules will help ensure that a fund’s portfolio aligns with a fund’s name. Such truth in advertising promotes fund integrity on behalf of fund investors.”

Industry News

ASIC sues crypto exchange Kraken over alleged margin trading product violations

“These proceedings should send a message to the crypto industry that products will continue to be scrutinised by ASIC to ensure they comply with regulatory obligations in order to protect consumers. ASIC’s action should be a reminder of the importance to comply with the design and distribution obligations so that financial products are distributed to consumers appropriately.”