Global Brokerage posts total stockholders’ deficit of $164M for Q1 2021
FXCM Inc, now known as Global Brokerage Inc (OTCMKTS:GLBR), today posted a set of unaudited metrics for the first quarter of 2021.
Let’s note that the company has stopped filing financial reports with the US Securities and Exchange Commission (SEC) following Global Brokerage’s delisting and bankruptcy. Hence, the lack of any explanation for the results being what they are.
The data show that Global Brokerage saw total stockholders’ deficit of approximately $164 million at the end of the first quarter of 2021. This compares with a deficit of $155 million at the end of 2020. The deficit was $147 million at the end of the third quarter of 2020.
Total net revenues were $31.5 million in the first three months of 2021. Net loss attributable to Global Brokerage, Inc. was $8.5 million.
Global Brokerage has been a defendant in a number of lawsuits. One of these has been launched by investors in the broker. 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.
In March this year, the plaintiffs in this action secured partial class certification.