Investors suing FXCM Inc secure partial class certification
The lawsuit brought by investors suing FXCM Inc, now known as Global Brokerage Inc, is moving ahead, albeit with a trimmed class of plaintiffs. This becomes clear from an order signed by District Judge Ronnie Abrams on March 23, 2021.
The order, seen by FX News Group, states that the Court agrees with Magistrate Judge Moses’s Report in its entirety. Accordingly, the plaintiffs’ class certification motion is 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). As recommended by Judge Moses, the following class is hereby 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).
Additionally, Shipco and E-Global are appointed as Class Representatives, and the Rosen Law Firm, P.A. is appointed as Class Counsel.
Let’s recall that 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.