Parties in “mega lawsuit” against FXCM Inc push to pause proceedings

Maria Nikolova

To preserve resources for potential settlement, the parties seek a stay of all proceedings while they pursue mediation.

fxcm

The parties in a lawsuit targeting targeting FXCM Inc, now known as Global Brokerage Inc, are seeking to stay the proceedings. This has been revealed by a joint letter motion filed with the New York Southern District Court on August 20, 2020.

The “mega lawsuit” has been brought by FXCM investors. The case relates to events from February 2017. Back then the brokerage was banned from the US retail FX market following regulatory action. In response to the CFTC and NFA orders, the price of FXCM’s stock and the FXCM Notes dropped sharply, damaging investors.

The Letter Motion, submitted at the Court on Thursday and seen by FinanceFeeds, says that the parties request a stay of all proceedings pending completion of a private mediation. The parties have agreed to participate in a private mediation with Jed Melnick, Esq. of JAMS, on September 30, 2020. To preserve the parties’ resources for potential settlement, the parties seek a stay of all proceedings while they pursue mediation.

However, the parties respectfully request that the October 15, 2020 evidentiary hearing granted by the Court remain as scheduled in the event mediation is unsuccessful.

Let’s recall that, in April this year, the Court approved the plaintiffs’ motion to add E-Global Trade and Finance Group Inc. (E-Global) as a party plaintiff. In granting the motion, the Judge noted that all parties consented to the addition of E-Global to the plaintiffs’ list. E-Global replaces named plaintiff Sergey Regukh as a class representative, with the plaintiffs contending that E-Global is the real party in interest with respect to Mr. Regukh’s claims.

683 Capital, Shipco, and Sergey Regukh filed their motion for class certification on January 6, 2020. The plaintiffs are pursuing claims on behalf of a class of FXCM investors under §§ 10(b) and 20(a) of the Securities Exchange Act of 1934 (“Exchange Act”) against FXCM; Dror Niv, FXCM’s co-founder, CEO, and Chairman of the Board; and William Ahdout, FXCM’s co-founder, Chief Dealer, Managing Director, and director.

The proposed class is defined as:

“All persons and/or entities that purchased or otherwise acquired publicly traded Global Brokerage, Inc., f/k/a FXCM Inc. (“FXCM”) securities, including FXCM 2.25% Convertible Senior Notes due 2018 and Class A common stock, during the period March 15, 2012 through February 6, 2017, both dates inclusive”.

Read this next

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

Digital Assets

Coinbase scores minor victory vs SEC, but lawsuit to proceed

A federal judge in Manhattan, U.S. District Judge Katherine Polk Failla, ruled on Wednesday that the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Coinbase can largely proceed.

Web3

COTI Teams Up with Civic for Enhanced Digital Identity Control

СOTI and Civic are teaming up to enhance digital identity security in Web3, aiming to provide users with more control over their digital selves through innovative technology.

Digital Assets

BlockDAG Takes on Chainlink (LINK) Crypto, and RON With DeFi Card and 5000x Profit Potential

Explore BlockDAG’s innovative DeFi card, which transforms cryptocurrency into spendable cash, alongside Chainlink (LINK) crypto and Ronin’s advancements.

Digital Assets

Court finally decides on Sam Bankman-Fried sentence, experts predict 20 years

Sam Bankman-Fried, the former CEO of the now-defunct cryptocurrency exchange FTX, is set to face sentencing on Thursday in a pivotal moment that could see the entrepreneur beginning a lengthy period in federal prison.

Crypto Insider

DeFi Winter Thaws: A Look at the Emerging Landscape

The past year has seen a significant shift in the Decentralized Finance (DeFi) market, transitioning from a period of decline (“DeFi winter”) to a potential season of growth.

Digital Assets

KuCoin announces $10 million airdrop as users withdraw $1.2 billion

KuCoin – the fourth-largest crypto exchange in the world by trading volume – today announced plans to distribute $10 million worth of Bitcoin and its native KCS token via an airdrop event.

<