FXDD Also Accused of Fraud in Class Action Lawsuit

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It didn't take long for the next forex lawsuit to arrive, and from the same source too! Following on from their action against FXCM, the Business Trial Group of Morgan & Morgan, P.A. has announced another class action lawsuit, this time against FXDirectDealer, LLC (more commonly known simply as FXDD).  According to the announcement the plaintiff this time around is Hugo Cruz, and once more the suit accuses:

FXDD of fraud by misrepresenting its trading platform as one that is free from dealer intervention or manipulation.  Instead, Cruz alleges, FXDD uses a number of devices and tricks, including software applications, designed specifically to manipulate and interfere with customers’ trades.

Like the FXCM case, the suit alleges that FXDD uses specially designed software to manipulate trading and “loot” its customer accounts, and also that FXDD lures its customers by promoting a  “demo account,” which was touted as  providing customers with a true market trading experience. Instead, the suit alleges, the demo account does not reflect what FXDD does when the customer begins “live” trading.

I can't help but wonder if these forex class action suits are like London buses? You wait ages for one, then three come along in quick succession.

Filed under Brokers by  #

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