The lawsuit brought by investors in FXCM Inc, now known as Global Brokerage Inc, continues at the New York Southern District Court.

The defendants are planning to move for a summary judgment, according a motion filed with the Court on August 31, 2021 and seen by FX News Group.

The document states that defendants Global Brokerage, Inc. f/k/a FXCM Inc. (“FXCM”), Dror Niv, and William Ahdout intend to file a motion for summary judgment in this Action.

Given the Court’s March 23, 2021 Order, which adopted Magistrate Judge Moses’ report and recommendation that the holders of convertible notes not be certified as a class for failure to demonstrate that those notes traded in an efficient market, the defendants intend to move for summary judgment against both the certified class as well as the individual convertible notes plaintiff, 683 Capital Partners, LP.

Let’s recall that, in March 2021, the plaintiffs’ class certification motion was granted in part (as to FXCM’s Class A common stock) and denied in part (as to the 2.25% Convertible Senior Notes due 2018). The following class was certified pursuant to Rule 23(a) and (b)(3):

“All persons and/or entities that purchased or otherwise acquired publicly traded Global Brokerage, Inc., f/k/a FXCM Inc. (“FXCM”) Class A common stock, during the period March 15, 2012 through February 6, 2017, both dates inclusive. 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)”.

This case stems from the events from February 2017, when FXCM reached settlements with the CFTC and NFA, in a move that led to its exit from the US retail FX market. The price of FXCM’s securities plummeted after the regulatory settlements were announced, thereby damaging investors in FXCM Inc.

The plaintiffs brought this class action suit against FXCM, Dror Niv and William Ahdout, alleging that, from March 15, 2012 until February 6, 2017, Defendants committed securities fraud in violation of Sections IO(b) and 20(a) of the Securities Exchange Act of 1934 and Rule l0(b)-5. Specifically, the plaintiffs allege that the defendants were responsible for false or misleading statements with respect to FXCM’s purported agency-trading model and FXCM’s relationship with another company, Effex Capital.

The plaintiffs, suing on behalf of themselves and all others similarly situated, allege that defendants violated the federal securities laws by knowingly misleading investors as to the nature of FXCM’s No Dealing Desk (NDD) platform and FXCM’s relationship with the largest market maker for its NDD platform.