Class Action Against TD Ameritrade Over Alleged Handling of Negative Oil Prices

A class action lawsuit filed by lead counsel, R Tamara de Silva in the Northern District of Illinois alleges that one of the largest brokerage firms in the world, TD Ameritrade Inc., was informed that negative prices may happen and took no steps to protect its customers, nor warn trading clients about the possibility of negative oil prices.

Class Action Against TD Ameritrade Over Alleged Handling of Negative Oil Prices

Chicago, IL, July 10, 2020 –(PR.com)– On April 20, 2020, for the first time in history, crude oil futures settled at a negative price of -$37.62. Crude oil has been the lifeblood of industrialized nations since the 1950s – underpining global transportation, energy, consumer goods, and commerce.

A class action lawsuit filed July 9, 2020 in the Northern District of Illinois alleges that one of the largest brokerage firms in the world, TD Ameritrade Inc., was informed that negative prices may happen and took no steps to protect its customers, nor warn trading clients about the possibility of negative oil prices.

The federal complaint alleges: TD Ameritrade and TD Ameritrade Futures and Forex, LLC took no measures to warn its customers; did not prepare its trading platform to handle negative prices and liquidated positions in a “commercially unreasonable” manner resulting in losses of millions of dollars by class members.
The suit further alleges that TD Ameritrade and TD Ameritrade Futures and Forex, LLC have acted in bad faith by selectively settling with some customers but not smaller traders and retail customers.

Two law firms have joined the lead counsel in continuing to investigate the brokerage firms conduct on and in the aftermath of the historic drop in crude oil.

If you would like more information about this lawsuit, please call (312) 913-9999 or email, tamara@desilvalawoffices.com.

Published at Fri, 10 Jul 2020 15:36:18 +0000