NY Judge rules against adding fifth case to “mega lawsuit” against FXCM - FinanceFeeds

NY Judge rules against adding fifth case to “mega lawsuit” against FXCM

Judge Ronnie Abrams has declined adding the case Murrah v. Forex Capital Markets LLC et al to the lawsuit already combining four similar actions against the broker and its principals.

Earlier this month, FinanceFeeds reported that 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 Global Brokerage Inc (NASDAQ:GLBR), formerly known as FXCM Inc, into one “mega lawsuit”. The four combined actions are captioned as 17-cv-916 RA, with The Rosen Law Firm taking the role of lead class counsel.

The number of legal actions combined could have been higher, but, on Monday, Judge Ronnie Abrams has ruled against adding another action to the combined lawsuit. According to New York Southern District Court filings, on May 22, 2017, Judge Ronnie Abrams ruled that the case Murrah v. Forex Capital Markets LLC et al was not related to 17-cv-916 RA. Hence, the case was returned for a new assignment.

As FinanceFeeds reported, the case Murrah v. Forex Capital Markets LLC et al is the most recent filed against the broker at the New York Southern District Court. The complaint submitted by Ms Doris Murrah on May 17, 2017, targets Global Brokerage Inc (NASDAQ:GLBR), FXCM Holdings, Forex Capital Markets LLC, William Ahdout and Dror Niv.

Although the nature of the case is also defined as Securities/Commodities/Exchange like the other four combined actions against FXCM at the same court, this one has ADR (alternative dispute resolution) sign added to the parties involved. On Monday, the court designated Debra Freeman as a Magistrate Judge to this case. This usually is a part of an ADR procedure, that is, the parties may consent to proceed before the Magistrate Judge.

There are several other cases against FXCM at the New York Southern District Court, including the Raul v. Sakhai et al case (# 1:17-cv-02035). This case has 13 defendants, including Global Brokerage Inc and FXCM COO David Sakhai. The plaintiff is represented by Joshua M. Lifshitz, Lifshitz & Miller. Another case (number 1:17-cv-02729) represents a single plaintiff – Vantalie Nguyen, and names seven defendants, including FXCM, Effex Capital, as well as John Dittami, Effex’s CEO.

In its report for the first quarter of 2017, Global Brokerage has reiterated its intentions to defend itself in all these cases.

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