Lawsuit Against Former FXCM Entity Expands With New Plaintiffs

The Financial Commission / Media posts / Lawsuit Against Former FXCM Entity Expands With New Plaintiffs

In the motion filed with the New York Southern Court, attorneys of plaintiffs in a class-action lawsuit against Global Brokerage, Inc., formerly known as FXCM Inc. indicated that some 35 more investors can be eligible to join the lawsuit going forward.

The lawsuit filed several years ago focuses on FXCM’s relationship with Effex Capital and accuses the former US online broker giant of securities fraud and by falsely representing its purported agency-trading model with Effex Capital.

The motion filed in court suggests a total of 83 companies who held FXCM Notes during the period of alleged misconduct. Of those, 35 firms have been identified as being eligible according to the plaintiff’s counsel, including a variety of trusts and insurance companies.

The information was gathered using Bloomberg data and the plaintiffs indicated that “there is reason to believe the true number of class members may be greater because the Bloomberg data are not comprehensive… thus, the Bloomberg data provide a floor, not a ceiling, for the number of potential FXCM Notes subclass members.”

As such, the already long legal battle may expand for an unforeseeable amount of time and present further issues to Global Brokerage, Inc.

Don’t miss the latest news and discussion on our Telegram channel. Subscribe today!

Share This Story, Choose Your Platform!