IG Markets Class Action

IG Markets Class Action

On 5 May 2022, Piper Alderman filed a class action in the Federal Court of Australia against IG Markets Limited on behalf of investors who traded contracts for difference (CFDs): James Slater and Anor v IG Markets Limited VID 301/2023.

On 18 August 2023, William Roberts Lawyers (WRL) commenced a similar class action against IG Markets Limited and IG Australia Pty Limited: Deon Singh v IG Markets and Anor VID 631/2023. Following a period of conferral, Piper Alderman, WRL and their respective litigation funders agreed to consolidate the class actions and, on 8 February 2024 his Honour Justice Beach made orders which, among other things, consolidated the class actions (the Class Action).

The proceeding concerns two types of CFDs:

• Assets CFD which allow a client to take a financial position based on the predicted future value of an underlying Reference Asset such as an equity, foreign currency, cryptocurrency or index; and
• Binary CFDs (Sprint Markets, Digital 100s and Knock Outs) which allowed a client to take a financial position based on the outcome of a specific financial, non-financial or political event.

The Class Action alleges, inter alia, that IG Markets Limited and IG Australia Pty Limited (IG) failed to adequately assess whether CFDs were suitable investment products for its retail investors, as well as inadequately disclosed the risks of CFDs.

The Class Action also makes claims on behalf of persons (PIO Claimants) who were upgraded to professional accounts in consideration of the Australian Securities and Investments Commission’s Product Intervention Order which came into effect in March 2021 and introduced strict new conditions on Asset CFDs to protect retail clients.  Among other things the claim alleges that, when dealing with PIO Claimants for the purposes of approving a client for a Professional Account, IG took no or no adequate step to assess their suitability for classification as a wholesale investor.

The primary causes of action pleaded in respect of the above claims are misleading and deceptive conduct pursuant to s1041H of the Corporations Act 2001 and s12DA of ASIC Act 2001, and unconscionable conduct pursuant to s991A of the Corporations Act and s12CB of the ASIC Act.

Finally further claims based on defective PDS disclosures and Target Market Determination contraventions are also made by the Applicant.

The Class Action is being funded by litigation funders Omni Bridgeway and Woodsford.

Group Members

Group Members are defined as persons who:

• during the period 4 May 2017 to 11 August 2023 (inclusive) (Relevant Period):
  • entered into, or acquired an interest in, one or more CFDs issued by IG; and
  • were not professional investors;
• were resident or ordinarily resident in Australia at the time they entered into, or acquired an interest in, the CFDs; and
• suffered loss or damage as a result of the conduct alleged against IG.

Status

The Federal Court of Australia has listed the proceedings for a four week hearing commencing 29 November 2027.

A copy of the most recent orders can be found here.

Registering your details

Individuals who have suffered loss or damage through trading CFDs during the Relevant Period are encouraged to register their interest in the Class Action through Omni Bridgeway’s website here.

Piper Alderman encourages all Group Members, who do not wish to opt out, to sign up so that Omni Bridgeway can include you as ‘known’ funded group members and ensure you receive important updates regarding the Class Action and, most importantly, so that any distribution from the proceeds of the Class Action to which you may be entitled is properly paid to you.

If you have any questions regarding the class action, please contact us by email at [email protected].