London-headquartered law firm Giambrone is preparing litigation against Banc de Binary, the firm shared exclusively with Finance Magnates. The company that last year led an effort against LBinary and NRGBinary is now aiming at the Cyprus based brokerage.
The company is investigating a number of complaints about fraudulent binary options trading by investors to make a case against Banc de Binary.
Commenting to Finance Magnates, the lawyer on the case, Joanna Bailey, said: “We have been contacted by around 40 new clients recently, mostly based in Europe, Middle East and Australia. The joint value of their claims is approximately €2 million. We need to reach at least 3 million to make the litigation financially viable for the litigation funders.”
“It appears that most of the background facts surrounding the operation of the company are similar amongst our clients so we are considering the possibility to issue a class action/group litigation action against Banc De Binary Ltd and all of its affiliated companies,” law firm Giambrone shared in an official statement.
Back in March 2016, US litigators mandated Banc de Binary Ltd., ET Binary Options Ltd., BO Systems Ltd., BDB Services Ltd. and its owner Oren Shabat Laurent to pay over $9 million to U.S. clients.
Giambrone is in the process of ascertaining whether it can use the US proceedings against Banc de Binary in order to help international clients to recover their funds.
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Funding of Litigation
Gimabrone is in the process of negotiating an arrangement with a litigation hedge fund based in the City of London. The process enables legal financing for parties that are not able to pay ahead. In return the funder of the case typically receives a success fee. Such outfits typically carefully weigh the chances of the litigation succeeding.
Elaborating on the matter, Mrs Bailey said: “Our firm has been involved against Banc de Binary since end of last year and I am really pleased that the combined efforts of the US regulators (with whom we have been in touch in relation to this case) and our lawyers in respect of the non-us based clients are achieving this result.”
“We still can not fail to notice how the European regulators are being reactive (if at all) and not proactive. They have been alerted by us about BdB and so far we have not received any response to our clients’ complaints,” the lawyer on the case elaborated.
The litigation can be conditional on the chances of winning the lawsuit as ascertained by the litigation hedge fund and also on the number of complainants for a class action.
“Ideally we are looking to build a €5m claim,” Mrs Bailey concluded.
Banc de Binary Closure
As Finance Magnates reported minutes ago, a high level official at the CySEC-regulated binary options provider Bank de Binary has confirmed that the company is closing its doors. The decision is said to have been taken by the firm’s owners following the consistently negative press that the company faced over the past year.
“It’s become the wild west in the past few months. I don’t see how we can continue operating under such scrutiny and public image.” the company official told Finance Magnates.