E*Trade Wins Dismissal of Client Lawsuit Over Oil Price Crash

摘要

E*Trade Securities LLC fended off a proposed class action alleging that the brokerage giant failed to properly process customers’ orders following an oil futures market collapse thatcaused millions in losses.The E*Trade users, led by Benjamin Whitesides, alleged the company breached customer contracts when a system failure prevented its clients from trading oil futures after pricesdropped below $0 for the first time ever in April 2020. At the time, Saudi Arabia and Russia were engaged in a price war and the coronavirus pandemic was ravaging economies worldwide.Magistrate Judge Jacqueline Scott Corley of the U.S. District Court for the Northern District of California tossed the breach of contract claims Thursday, putting to bed a case that initiallyalso included allegations of negligence. The court dismissed the negligence claims earlier in the case.