AtoZ Markets – One of the London Stock Exchange-AIM listed companies, Plus500, is allegedly facing a Giambrone Plus500 class action, as some of the online reports suggested during the course of the past week.
Plus500 is an online trading platform offering users the opportunity to trade contracts for difference (a type of financial derivative) that enable them to speculate on the fluctuating price of cryptocurrencies, shares, indices, and commodities.
Alleged Giambrone Plus500 class action: Rigged platform claims
Plus500, an internationally operating company with fully regulated subsidiaries in the United Kingdom, Australia, New Zealand, Cyprus, Israel, and South Africa, is allegedly facing litigation from the law firm Giambrone.
Some of the online reports suggest that Giambrone is preparing the group litigation at the moment. AtoZForex.com team decided to investigate the entire situation and reached out to both parties for more insights. Plus500 told AtoZ Markets that:
"We have had no contact from this law firm, and until such time as we do we cannot comment on their allegations or the individual cases they claim to represent.”
When reaching out to the law firm Giambrone through different communication channels, no proper reply was provided. Despite, our team tried to reach Giambrone for over a week. Also, AtoZForex.com team tried to contact Luca Salerno, but his profile was not found on Giambrone’s official website nor on the law firm’s LinkedIn page.
In the online reports, the firm allegedly stated that it has interviewed several hundred people in regards to this case. The law firm claims that these people have been trading via Plus500 in the UK and lost their funds in "unfair circumstances". Online reports quote a lawyer with Giambrone, Luca Salerno, as saying: "We have more than 600 people who got in touch with us."
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The online reports also suggest that Mr. Salerno has accused Plus500 of ‘rigging the platform’. Specifically, it was reported that the clients said that Plus500 platform often shut down at inconvenient times, which can impact the profits gain on advantageous movements in the markets. Allegedly, one of the traders came forward under the name Yousif Sadik. According to some reports, this customer stated:
"To be honest, I feel that was deliberate because it didn't happen just once. If it was a one-off … you could kind of understand it. But if it's something that persisted every week, you really need to look into your service."
Plus500 refutes that it allows inexperienced traders to access its platform
Online reports also suggest that the EU law firm has also claimed that Plus500 provides an opportunity for inexperienced traders to access the platform by signing the waiver. Supposedly, Mr. Salerno has intentionally failed the knowledge test to see the document from Plus500. Purportedly, he has stated:
"By clicking that waiver, I was effectively saying I'm not really qualified to do this trading … and that is something they cannot do.”
The same reports highlighted that the spokesperson from Plus500 has stated that the screening process within the firm is strict, which the spokesman also confirmed to AtoZ Markets:
"The process "requires each customer to pass a knowledge test, state level of experience with derivative products … and other questions regarding their economic profile and appropriateness.”
The Plus500 spokesman added:
“Plus500 is a highly regulated business in a highly regulated market and operates strictly within its regulatory frameworks. Our trading platform operates transparently and fairly. Customers are boarded within strict compliance frameworks and customers cannot lose more than they deposit."
Our contact further added that the broker takes "reasonable steps" to achieve "the best possible result" for clients in relation to their trading positions. Furthermore, the firm stated that there was no outstanding litigation against the company neither any correspondence from Giambrone was received.
“Customer care is a cornerstone of the Plus500 success; we enforce robust complaint handling policies in which customers' complaints are handled by dedicated and experienced professionals. The Company works closely and promptly with local ombudsman bodies to resolve any pending complaints in accordance with appropriate regulatory guidelines. Customers are therefore welcome to approach us if they have a complaint.”
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