For Immediate Release
[Chicago, Illinois, July 9, 2020]
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 today 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.
According to the federal complaint 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 firm's conduct on and in the aftermath of the historic drop in crude oil.
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If you would like more information about this lawsuit, please call (312) 913-9999 or email, tamara@desilvalawoffices.com