FXCM Inc, investors not to object to Judge recommendations in class action lawsuit
Shortly after Magistrate Judge Barbara C. Moses issued a report and recommendations regarding the class of investors suing Global Brokerage, Inc. formerly known as FXCM, Inc., Drew Niv, and William Ahdout, the parties have made clear their stance regarding the recommendations.
According to the latest filings with the New York Southern District Court, the parties in the investor lawsuit targeting FXCM Inc will not be objecting to Judge Moses’ recommendations.
Given the Report and Recommendation, additional time is needed for the exchange of expert reports. That is why, the parties requested modifications to the schedule. On March 19, 2021, the Court granted the request. Now, the deadline to submit reply expert reports and complete all discovery is shifted to July 12, 2021.
Let’s recall that the lead plaintiffs in this action are 683 Capital Partners, LP and Shipco Transport Inc. The 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.
Lead plaintiffs 683 Capital and Shipco, together with named plaintiff E-Global, 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.
Judge Moses recommends the following class be certified pursuant to Fed. R. Civ. P. 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).
Judge Moses further recommends that Shipco and E-Global be appointed as Class Representatives, and that Rosen Law be appointed as Class Counsel.