An Orrick team led by Rich Morvillo and Rob Stern secured a win for client TD Ameritrade Futures & Forex LLC (“TDAFF”) in a putative class action alleging a breach of the implied covenant of good faith and fair dealing. The action stems from losses suffered by TDAFF customers—traders in futures options—in connection with extreme market volatility in early February 2018.
On December 17, a judge in the U.S. District Court for the South District of Florida ruled in our client’s favor and denied the plaintiffs’ motion to certify a class of over 200 customers who traded in futures options through TDAFF. The court found that a class action was not superior to other methods of adjudication and that individualized issues, in particular with respect to calculating alleged damages and assessing customers’ expectations, predominated over issues common to the proposed class.
The victory comes on the heels of a ruling dismissing all but one of the claims brought against TDAFF, including all claims asserted under the Commodity Exchange Act. Orrick is also representing TDAFF in a number of arbitrations brought by customers asserting similar claims.
The Orrick team representing TDAFF also included Dan Streim, Nick Peterson, Ayanna Lewis-Gruss, and Marnee Rand.