As of the 13th of April, 2020, the Magistrate Judge, Barbara C. Moses, has given the approval to amend the list of plaintiffs in the FXCM Inc “mega lawsuit.” E-Global Trade and Finance Group Inc (E-Global) Will be added to the plaintiff list in the lawsuit against FXCM Inc, also known as Global Brokerage Inc.
Making Changes Before Rolling In
E-Global will now stand as the party plaintiff in this case. Through the granting of the motion, the Judge made note that all parties consented with the addition of E-Global to the list of plaintiffs. E-Global will now replace Sergey Regukhe as the class representative in this lawsuit, as it was contended that E-Global was the real party of interest in the case. This comes in regards to the claims that Regukh had made.
As it stands now, the plaintiffs are gearing up to file their third amended complaint in the lawsuit, with E-Global as a named plaintiff. This will occur no later than the 20th of April, 2020.
Damaging Investor Holdings Through Illegal Actions
The case in question is in regard to events that had transpired in February of 2017. Following regulatory actions, the brokerage in question, FXCM, was summarily banned from the US’s retail FX markets.
When the orders of both the NFA and the CFTC were made public, the stock prices of FXCM and the FXCM Notes dropped like a stone. As one would imagine, investors with a stake in the company incurred significant damages.
Demands For Reparations
As a result, a motion for class certification was made on the 8th of January, 2020, by Shipco, 683 Capital, as well as Sergey Regukh. The plaintiffs in question are pursuing claims on behalf of a class of FXCM Investors.
These investors are protected under §§ 10(b) and 20(a) of the Securities Exchange Act of 1934, hereafter referred to as the Exchange Act. The lawsuit accuses the company itself, as well as William Ahdout and Dror Nive. Ahdout served as a Managing Director, director, and Chief Dealer at the company. Niv served as the Chairman of the Board and CEO of FXCM. Both men stand as co-founders of the company.
It will be a compelling court case and stands as one of the more significant events of the year that doesn’t have the coronavirus to blame. What will happen in the future remains to be seen, but some things could be foreseen with little difficulty. FXCM stands as guilty of showing preference to certain market makers due to the company holding undeclared stakes in it.