Case Page

 

Case Status:    ONGOING    
On or around 08/25/2017 (Ongoing date of last review)

Filing Date: May 08, 2015

According to the law firm press release, FXCM provides online foreign exchange (“FX”) trading and related services to retail and institutional customers worldwide. The Company acts as an agent between retail customers and a collection of global banks and financial institutions by making foreign currency markets for customers trading in foreign exchange spot markets. FXCM provides its customers access to over-the-counter FX markets through its proprietary technology platform.

The complaint alleges that the Company issued materially false and/or misleading statements regarding the Company’s business operations and the strength of its financial prospects, while concealing significant weaknesses concerning its core business. According to the complaint, the truth was that: (1) the Company’s agency model did not insulate the Company from financial risk from its heavily leveraged clients; (2) the Company did not disclose the true potential risk posed by market volatility; (3) the Company did not maintain sufficient regulatory capital reserves; and (4) the Defendants’ positive statements about the Company’s business, operations, and growth lacked a reasonable basis.

Plaintiffs filed a consolidated complaint on January 12, 2016.

On August 18, 2016, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiffs were given leave to file an amended complaint. Plaintiffs did not file an amended complaint, this Judgment in favor of Defendants was entered on October 7. Plaintiffs filed a Notice of Appeal of this Order on November 3.

On August 17, 2017 the Court of Appeals issued a Mandate vacating the judgment of the District Court and remanding for further proceedings.

An amended complaint was filed on August 25, 2017.

COMPANY INFORMATION:

Sector: Financial
Industry: Investment Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: FXCM
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. New York
DOCKET #: 15-CV-03599
JUDGE: Hon. Wood
DATE FILED: 05/08/2015
CLASS PERIOD START: 06/11/2013
CLASS PERIOD END: 01/20/2015
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Scott + Scott LLP (NY)
    405 Lexington Avenue, 40th Floor, The Chrysler Building, Scott + Scott LLP (NY), NY 10174
    (212) 223-6444 (212) 223-6444 ·
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 15-CV-03599
JUDGE: Hon. Wood
DATE FILED: 01/12/2016
CLASS PERIOD START: 06/11/2013
CLASS PERIOD END: 01/20/2015
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Scott + Scott LLP (NY)
    405 Lexington Avenue, 40th Floor, The Chrysler Building, Scott + Scott LLP (NY), NY 10174
    (212) 223-6444 (212) 223-6444 ·
No Document Title Filing Date