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Southern District Dismisses Class Action Lawsuit for Failure to Plead with Particularity

On Behalf of | Feb 1, 2019 | BLOG, NEWS ARTICLE

The United States District Court for the Southern District of New York dismissed all six of the claims asserted against a foreign exchange liquidity provider and its principal in a class action lawsuit. The District Court dismissed the claims due to the Plaintiffs’ failure to plead the alleged violations of the Commodity Exchange Act with particularity and failure to state a claim for which relief may be granted. In its decision, the District Court noted that all the allegations asserted against the liquidity provider and its principal were made upon information and belief, lacking any factual support in the Complaint. Thus, the District Court held that the Complaint lacked the particularity required by Rule 9(b). In addition, the District Court opined that the Complaint lacked any indication of actual damages sustained by Plaintiffs as a result of the alleged fraud and that the Plaintiffs failed to allege a sufficient nexus with the liquidity provider and its principal.  Nguyen v. FXCM Inc., No. 1:17-CV-2729-PAC-HBP, 2019 WL 416328(S.D.N.Y. Feb. 1, 2019)