Parties in “mega lawsuit” targeting FXCM propose case management plan
The parties in the case related to the events from February 2017, which led to FXCM’s exit from the US retail FX market, expect the trial to last 5-10 days.
The parties in the so-called “mega lawsuit” targeting Global Brokerage, Inc. formerly known as FXCM Inc., Dror Niv, and William Ahdout, have filed a proposed case management plan with the New York Southern District Court.
The document, submitted on May 28, 2019, states that all parties do not consent to conducting all further proceedings before a United States Magistrate Judge, including motions and trial. The parties are free to withhold consent without adverse substantive consequences.
This case is to be tried to a jury. The parties have conferred and their present best estimate of the length of trial is 5-10 days.
All discovery shall be completed no later than November 4, 2020, with the case set to be trial ready 60 days from the close of discovery or the Court’s decision on any dispositive motion.
Counsel for the parties propose retention of a private mediator as an alternative dispute resolution mechanism for this case. The use of any alternative dispute resolution mechanism does not stay or modify any date in the proposed plan.
The lead plaintiffs in this case – 683 Capital Partners, LP and Shipco Transport Inc., and named plaintiffs Sergey Regukh and Brian Armstrong, have brought this action, alleging that, from March 15, 2012 until February 6, 2017, the defendants committed securities fraud in violation of Sections IO(b) and 20(a) of the Securities Exchange Act of 1934 and Rule l0(b)-5. Specifically, the plaintiffs allege that the defendants were responsible for false or misleading statements with respect to the company’s purported agency-trading model and FXCM’s relationship with another company, Effex.
On March 28, 2019, the Court concluded that the second amended complaint adequately alleges that FXCM, Niv and Ahdout have committed securities fraud with respect to statements or omissions concerning FXCM’s supposed agency-trading model, the Company’s purported “order flow” payments with Effex, and Generally Accepted Accounting Principles (“GAAP”).
The defendants filed their answer with the New York Southern District Court on May 13, 2019. The document enlisted 46 affirmative defenses. For instance, the defendants claim that the plaintiffs’ claims are barred, in whole or in part, because the alleged misrepresentations are non-actionable statements that contain expressions of opinion that the plaintiffs have not alleged, and cannot prove, were not truly held.
Finally, the defendants argue that they at all times acted in good faith and in reasonable reliance upon the representations, reports, expert opinions and advice of others. They insist they were entitled to, and did, rely upon representations, reports, expert opinions and advice of others in affixing their signatures to, and authorizing public filings.
The lawsuit continues at the New York Southern District Court.