Attorney of plaintiffs of the against Global Brokerage, Inc., formerly known as FXCM Inc., Dror Niv, and William Ahdout have submitted exhibits in the court, revealing the identities and holdings of the FXCM Noteholders between Q2 in 2014 and Q1 in 2017.
In the motion filed with the New York Southern Court, the attorney of the plaintiffs showcased several screenshots from the Bloomberg Terminal and then shortlisting the potential class members.
In total, the names of 83 unique entities were identified holding FXCM Notes at the ends of the quarters overlapping the Notes Period. However, 43 of them sold their holdings by the end of Q4 in 2016. Because of their ‘in and out’ purchases, they are not likely to be the members of the lawsuit.
Another five, namely Credit Suisse, Jefferies Group, Penderfund Capital Management, Zazove Associates, and Phoenix Investment Adviser, signed a forbearance agreement that will prevent them from joining the lawsuit.
The remaining 35 entities are qualified to be class members of the lawsuit against the retail brokerage.
A few of the 35 names are 683 Capital Management LLC, Absolute Investment Advisers LLC, American Century Caualty Co, Amerisure Mutual Insurance Co, Blue Cross & Blue Shield of Mississippi, Candlewood Investment Group LP, Catalyst Capital Advisors LLC, Citadel Advisors LLC, Colonial Life Insurance Co of Texas, Doyle Wealth Management Inc, DuPont Capital Management Corp, Goodville Mutual Casualty Co, Guarantee Trust Life Insurance Co and Guaranty Income Life Insurance.
The Number Can Increase
The motion stressed that the numbers might increase as the data only show quarter-end holdings and TRACE being the primary source of the data.
“There is reason to believe the true number of class members may be greater because the Bloomberg data are not comprehensive,” the court filing noted. “Thus, the Bloomberg data provide a floor, not a ceiling, for the number of potential FXCM Notes sub-class members.”
As reported by Finance Magnates earlier, the lead plaintiffs of the lawsuit against the brokerage are 683 Capital Partners, LP, and Shipco Transport Inc. They accused of securities fraud and by falsely representing its purported agency-trading model and its relation with Effex Capital.