Lawsuit Against Global Brokerage to Proceed as Class Action

The plaintiff’s motion for class certification has been granted by a US Judge.

There’s been another development in the large lawsuit targeting Global Brokerage, Inc. formerly known as FXCM Inc., Dror Niv, and William Ahdout. Namely, the plaintiff’s motion for class certification has been granted.

According to court documents seen by Finance Magnates, the Honourable Ronnie Abrams, a United States District Judge, after considering the motion for Class Certification and Appointment of Class Representatives and Class Counsel, has granted the class action on the 6th of January 2020.

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Class action against Global Brokerage

The motion, which was also filed on January 6, 2020, was filed with the New York Southern District Court by the lead plaintiffs in the so-called “mega lawsuit” – 683 Capital Partners, LP, and Shipco Transport Inc., and an additional named plaintiff Sergey Regukh.

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According to the document, those who can be included in the class are: “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.”

Those excluded from the class are: “(i) Defendants; (ii) current and former officers, employees, consultants and directors of FXCM and FXCM Holdings, LLC; (iii) siblings, parents, children, spouses, and household members of any person excluded under (i) and (ii); (iv) any entities affiliated with, controlled by, or more than 5% owned by, any person excluded under (i) through (iii); and (v) the legal representatives, heirs, successors or assigns of any person excluded under (i) through (iv).”

The Judge has also approved the request to appoint a Class Counsel, with the Rosen Law Firm, P.A. appointed to the role. The plaintiffs are pursuing claims on behalf of a class of FXCM investors 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.

It is important to point out that Global Brokerage is no longer associated with FXCM. Therefore, when Finance Magnates reached out, the broker denied to comment as it is no longer associated. 

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