OANDA, ex-CEO Ed Eger have until Sep 15th to answer in case about fraud, stress infliction

Maria Nikolova

Former OANDA customer Antonio Medina says the company actions led him to lose sleep, become ill, develop anxiety and gastralgia.

OANDA Corporation and its former Chief Executive Officer Edmond I. Eger, III (Ed Eger) have until September 15, 2017, to file their answers in a civil case brought by one of their customers – Antonio Medina. The information is contained in court filings, seen by FinanceFeeds.

Back in 2005, Mr Medina was solicited by OANDA to make use of its FX services, with the broker advertising that it would offer a competitive spread and that it would not charge any commission.

According to Mr Medina’s complaint, OANDA charged him with fictitious interest for non-existing money and failed to provide competitive spread that it promised, but instead increased it beyond the competition’s.

Starting on or around August 2015, the complaint says, the Defendants have failed to provide competent service, failing to follow Mr Medina’s trade instructions. Plaintiff received either no response or unresponsive emails, when he tried to contact the broker. In addition, Defendants promised that OANDA’s exchange prices, quotes and spread were transparent and that they would provide historical data with at least one minute accuracy spanning many years back but allegedly failed to do so.

Mr Medina says he had a trading strategy that would have generated him profits had it not been for OANDA’s false representations and uncompetitive spreads.

The complaint accuses OANDA et al of: (1) breach of warranty; (2) false advertising; (3) breach of oral contract; (4) breach of covenant of good faith and fair dealing; (5) breach of fiduciary duty; (6) fraud; and (7) infliction of emotional distress.

With regard to the last charge, Mr Medina claims that:

“As a proximate result of the Defendants’ acts and omissions, Plaintiff suffered mental anguish, and emotional and physical distress, and has been injured in his mind and body as follows: Plaintiff has lost sleep, become ill, developed anxiety, and gastralgia…”

Mr Medina is seeking punitive and compensatory damages, and demands OANDA to stop with the allegedly false advertising.

The Defendants have sought to dismiss the case. With regard to naming Ed Eger among the defendants, their counsel argues that:

“Nowhere in the amended complaint did Medina plead the existence of a contract into which he entered specifically with Edmond Eger, nor that Eger owed any special duty to Medina. Consequently, the causes of action against Eger fail to state a claim upon which relief could be granted.”

Regarding the other allegations in the complaint, the Defendants see no facts to support any of Mr Medina’s seven causes of action. They argue that Mr Medina pleads no facts establishing any oral contract, the terms of any such contract, or any warranty that was breached. The complaint does not plead how statements made by OANDA, its employees, or Edmond Eger were allegedly false, misleading, or had the likelihood to deceive or confuse the public.

The claim for infliction of emotional distress is barred by well-settled law, the Defendants say.

Earlier this week, the case was referred to Magistrate Judge Ronald L. Ellis for purposes of settlement. If the parties wish to proceed without settlement, they have to follow a schedule stipulated by the court. The parties must be ready for trial on 48 hours notice on or after February 23, 2018. The estimated trial time is 5 days, and it will be a jury trial.

The case is captioned Medina v. OANDA Corporation (1:17-cv-02316).

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