Leading law firm Piper Alderman has initiated a class action lawsuit against International Capital Markets Limited (IC Markets), representing Australians who have incurred substantial losses through controversial contracts for difference (CFDs).
Backed by global ESG and litigation finance firm Woodsford, Piper Alderman intends to recover hundreds of millions of dollars lost by Australian investors.
CFDs, legal in Australia but banned in some jurisdictions, are leveraged products allowing speculation on price movements of various assets without owning them.
Investors risk only a fraction of the asset's value, predicting whether its price will rise or fall.
Despite their legality, the Federal Court of Australia has critically likened CFDs to "financial heroin hits" for unseasoned retail investors.
Retail investors taken advantage of
“Everyday Australian retail investors who had little or no experience in trading complex financial products should never be offered highly-leverage CFDs without a proper assessment of their objectives, financial situation and without proper risk disclosure,” Piper Alderman partner Kate Sambrook said.
“The class action seeks to provide a remedy and recover losses for those retail investors.”
The class action alleges that IC Markets engaged in unconscionable, misleading and deceptive conduct from December 2017 to March 2021.
It also claims breaches related to Target (NYSE:TGT) Market Determination post-October 2021.
Affected individuals who traded CFDs with IC Markets and believe they were inadequately informed or assessed are encouraged to register on Piper Alderman's website for more information regarding the class action.