NEW YORK, June 16, 2020 /PRNewswire/ -- Sadis & Goldberg LLP has been retained by a hedge fund to investigate Interactive Brokers, LLC ("IB") for causing clients severe losses by preventing them from selling WTI Futures contracts when prices went negative on April 20, 2020. Sadis's client suffered millions of dollars in losses from IB's actions.
On April 20, 2020, the price of May 2020 WTI Futures contracts plunged from a price of over $5 per barrel to minus $37.63 per barrel. But IB's trading system had a defect that prevented clients from selling any WTI Futures at negative prices, which caused IB's clients over $100 million in losses. According to press reports, IB's trading system also suffered from other defects, including failing to provide accurate prices when the WTI Futures prices turned negative, and incorrectly calculating client margin levels.
IB has publicly admitted that the failure of IB's trading system to allow clients to sell at negative prices was a "mistake on our part." Further, IB has admitted that it had advance notice that the WTI Futures contract prices could go negative. Yet IB has refused to repay a number of clients who have suffered losses.
Sam Lieberman is leading Sadis's efforts to investigate Interactive Brokers for misconduct arising from the trading of WTI futures on April 20, 2020. Please contact Mr. Lieberman at [email protected] or (212) 573-8164 if you have any questions about the investigation or taking any action against Interactive Brokers, LLC. As reported by Brokercheck, Sadis has won two of the three largest-ever FINRA arbitration awards against Interactive Brokers, LLC.
Sadis is a leading New York based law firm focused on delivering sophisticated and creative legal solutions in a highly professional manner. The firm is recognized for its financial services transactional and litigation practice that consists of representing several hundred investment advisers and related investment entities (including hedge funds, private equity funds and venture capital funds). Similarly, the firm provides regulatory and compliance advice and representation in connection with SEC enforcement proceedings. Notwithstanding the emphasis on the financial services industry, the firm also provides a full range of tax, litigation, regulatory, real estate, intellectual property and corporate services to its clients.
SOURCE Sadis & Goldberg LLP