Judge Denies Class Action Certification in Suit Against TD Ameritrade
TD Ameritrade scored a win in the courts, with a federal judge denying a motion by clients of its subsidiary TD Ameritrade Futures & Forex for class certification of their lawsuit.
A group of investors had sued the firm alleging that their investments were unreasonably liquidated, as per an unwritten policy that TDAFF applied to all of their accounts, according to an order from U.S. District Judge Cecilia Altonaga of the U.S. District Court for the Southern District of Florida.
The investors asserted that their class is made up of 231 members whose investments TDAFF liquidated in after-hours trading starting in February, according to the court document.
The company denied the existence of any such policy, according to the order. Furthermore, TDAFF pointed out that there were 888 different and unique options owned by the putative class members, that their expectations were varied, that the market conditions during which the investments were liquidated also varied greatly, and that the decisions for liquidating the positions were made individually by 16 TDAFF associates, court documents show.
Altonaga ruled that within the case, “individual issues predominate over common issues” — particularly when it came to how plaintiffs were calculating damages, according to her order.
Furthermore, the judge said, “class action treatment is not a superior method for adjudication of this controversy,” court documents show.