The parties involved with the so-called “Mega Lawsuit” targeting Global Brokerage Inc, formerly known as FXCM Inc, are seeking to stay the proceedings for now. This was revealed by way of a joint letter motion that was filed to the Southern District Court of New York on the 20th of August, 2020
Mediation Needing Resources
This lawsuit has been brought forward by investors of FXCM, with the case itself focusing on events from the month of February 2017. The brokerage had been banned back then by the US FX retail market after a regulatory action was made against it. As a result of the orders by both the NFA and the CFTC, the stock price for FXCM Notes and FXCM stock saw an incredible drop, which damaged the investors.
In the latest Letter Motion, which was submitted to the Court on Thursday, the parties involved had requested a stay of all proceedings. This is requested to be in effect until private mediation has been completed. As it stands now, all parties have agreed to take part in a private mediation session with one Jed Melnick, Esq. of JAMS. This is set to occur on the 30th of September, 2020. In order to preserve resources for the potential settlement, the parties are requisition a stay on all proceedings as they pursue mediation, instead.
Keeping The Door Open
However, the parties also respectfully requested that the evidentiary hearing on the 15th of October, 2020, remain as it’s scheduled. This is due to the possible event of the mediation process being unsuccessful.
It was back in April of this year when the Court gave its approval to the Plaintiffs’ motion to incorporate Finance Group Inc and E-Global Trade. Alongside this, E-Global was added as a party plaintiff. Through the granting of the motion, the Judge had also taken note that all parties had consented to the addition of E-Global to the list of Plaintiffs.
The Many Developments
E-Global had also replaced the named plaintiff, Sergey Regukh, as a class representative. This comes in regards to that E-Global stands as the real party in interest when it comes to the claims that Regukh had made.
As it stands now, the lawsuit is targeting Dror Nive, the CEO, and co-founder of FXCM, alongside being the Chairman of the Board. Alongside this, one Wiliam Ahdout is accused as well, and stands as the director, Managing Director, co-founder and Chief Dealer of FXCM.