April 27, 2018

The United States Court of Appeals for the Second Circuit reinstated a lawsuit by five Korean traders alleging that the New York high-frequency trading firm Tower Research Capital LLC and its founder Mark Gorton engaged in illegal “spoofing” trades that damaged Korean investors who traded KOSPI 200 futures contracts. The Korean investors are represented by U.S. counsel, Cohen Milstein Sellers & Toll LLP and Korean counsel, We The People Law Group.

The Second Circuit reinstated claims asserted on behalf of a class of Korean national traders of KOSPI 200 futures contracts. The court found that Tower’s trades on the KRX night market for KOSPI 200 futures contracts qualify as “domestic” trades, entitling the traders to pursue class-action damage claims under the U.S. Commodity Exchange Act (CEA) and for unjust enrichment. It held that plaintiffs’ allegations make it plausible that parties trading on the KRX night market incur irrevocable liability in the United States.

The trades occurred overnight on the KRX during the period from January 1, 2012 through December 31, 2012 and were conducted on the Korea Stock Exchange through the overnight market on the CME Globex electronic trading platform in Aurora, Illinois. The KRX night market operates when the Busan, South Korea-based KRX exchange is closed. Orders entered in Korea are matched with counterparties on the CME Globex electronic trading platform.

Plaintiffs allege that Tower manipulated prices of KOSPI 200 futures contracts on the overnight CME Globex market throughout 2012. Plaintiffs bought or sold KOSPI 200 futures contracts at higher or lower prices than they would have absent defendants’ manipulation. Defendants’ actions allegedly provided them with illegal profits at the expense of plaintiffs and other investors.

About Cohen Milstein Sellers & Toll PLLC (Washington, DC, United States)

Cohen Milstein Sellers & Toll PLLC is recognized as one of the premier law firms in the country handling major, complex plaintiff-side litigation. With more than 90 attorneys, Cohen Milstein has offices in Washington, D.C., Chicago, Ill., Denver, Colo., New York, N.Y., Palm Beach Gardens, Fla., Philadelphia, Pa., and Raleigh, N.C. For additional information, please contact Richard A. Speirs at +1-202-408-4600 or rspeirs@cohenmilstein.com. Visit our website at www.cohenmilstein.com.

About We The People Law Group (Seoul, South Korea)

We The People Law Group, as plaintiff bar counsel, specializes in prosecuting cases relating to corporate crimes in antitrust, securities & commodity fraud, accounting irregularities and mass torts for civil redress of damages recovery. For more information, please contact YoungKi Rhee, Esq. at +822-2285-0062 or ykrhee@wethepeople.co.kr. Visit our website at: www.wethepeople.co.kr.