A Settlement has been reached with Interactive Brokers, LLC; Interactive Brokers Group, Inc.; and Thomas A. Frank (“Defendants”) in a class action lawsuit. This lawsuit alleges that Defendants acted negligently in designing, coding, testing, maintaining, and using the automated liquidation algorithm software (“A-L Software”), which software was then used to liquidate the margin accounts of Interactive Brokers, LLC customers, causing those customers to suffer unintended losses.
The lawsuit is called Batchelar v. Interactive Brokers, LLC, et al., Case No. 3:15-cv-01836. It is pending in the United States District Court for the District of Connecticut (the “Litigation”). Defendants deny the allegations in the lawsuit and deny that a Class is appropriate in this case. Defendants maintain that the A-L Software was properly designed, coded, tested, maintained, and used. Defendants dispute that any negligence occurred. The parties have agreed to settle the lawsuit (the “Settlement”) to avoid the costs and risks, disruptions, and uncertainties of continuing the Litigation.
“Class Members” are defined as individuals identified by IB's records who are entitled to benefits under the Settlement. Class Members may have received a previous notice directly from IB.
Your rights are affected whether you act or don’t act.
Summary of Your Legal Rights and Options in this Settlement | Deadline | ||
Do Nothing | If you do nothing, you will continue to be a Class Members and will automatically receive a cash payment. By staying in the Class you will give up your right to sue IB for the claims resolved by this Settlement (see Question 9). | No Deadline | |
Opt Out of the Settlement | You can choose to opt out of the Settlement and receive no benefit or payment. This is the only option that allows you to sue or arbitrate against Defendants individually for claims arising from negligence in the design, coding, testing, maintenance or use of the A-L Software, or be part of another lawsuit against IB related to the legal claims resolved by this Settlement. You can hire your own lawyer at your own expense. | May 27, 2026 | |
Object to the Settlement and/or Attend a Hearing | If you do not opt out of the Settlement, you may object to it by writing to the Court about why you don’t like the Settlement. You may also ask the Court for permission to speak about your objection at the Final Approval Hearing. If you object, you may also file a claim for Settlement benefits. | May 27, 2026 | |
These rights and options—and the deadlines to exercise them—are explained on the FAQs page.
The Court in charge of this case still has to decide whether to approve the Settlement.
Upcoming Important Dates
Notification Mailing
3/13/2026
Opt Out Deadline
5/27/2026
Objection Deadline
5/27/2026
Final Approval Hearing
6/17/2026