The legal representatives of Global Brokerage, Inc., formerly known as FXCM Inc., Dror Niv, and William Ahdout have moved to court on Wednesday, seeking a denial of an evidentiary motion filed earlier in connection with a class-action lawsuit against it.
Last week, the lead plaintiffs of the class-action lawsuit filed a motion in the New York Southern Court, naming at least 35 additional class members who were holding FXCM notes between Q2 in 2014 and Q1 in 2017.
It named a total of 83 unique investors. However, it purged the names of 43 as they sold their holdings by the end of Q4 in 2016 and dropped another five as they signed a forbearance agreement.
The defendant is now claiming that another 15 investors among those 35 names were signatories of the forbearance agreement. It has enclosed the evidence backing this claim in a sealed envelope.
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“By removing the Notes holders who have waived their claims, the number of potential members of the Notes Class is reduced from 35 to 20,” the latest motion by the defendants stated. “Plaintiffs cannot demonstrate that joinder is impracticable with only 20 class members.”
A Turn in the Class-Action Lawsuit?
In the lawsuit filed by the two lead plaintiffs, 683 Capital Partners, LP, and Shipco Transport Inc., the defendant was accused of securities fraud. The lawsuit further alleged that Global Brokerage falsely represented its purported agency-trading model and its relation with Effex Capital.
The US court granted class-action status to the lawsuit on the 6th of January 2020 against a motion by the plaintiffs, Finance Magnates reported earlier.
“It is Plaintiffs’ burden to establish by clear and convincing evidence, not speculation,” Global Brokerage attorneys added. “In their submission, Plaintiffs have identified only 35 possible members of the Notes Class and assert (without evidence) that there may be more…Given this limited number, numerosity cannot be presumed for purposes of certifying the Notes Class.”