Frequently Asked Questions

Basic Information

1. Why was the Notice issued?

The United States District Court for the District of Connecticut, authorized the Notice. You have a right to know about the proposed Settlement of this class action lawsuit, and about all of your options, before the Court decides whether to grant final approval of the Settlement. The Notice explains the lawsuit, your legal rights, what benefits are available, and who can receive them.

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 person that filed this lawsuit is called the “Plaintiff” (or “Class Representative”) and the companies they sued, Interactive Brokers, LLC; Interactive Brokers Group, Inc.; and Thomas A. Frank, are called the “Defendants.”

If you received notice, then you were identified as a Class member through Interactive Brokers, LLC’s records. Based on an analysis of those records for the period December 18, 2013, through July 14, 2025, it appears that (1) during this period your margin account with Interactive Brokers, LLC had at least one trade executed by the A-L Software, for which the actual execution price of the trade was such that the ratio of [Margin Improvement] / [Cost to Liquidate] falls in the range greater than zero but less than three; (2) you were a United States resident when the transaction(s) occurred; and (3) you do not fall within any of the groups excluded from the Class, which groups are listed in the answer to Question 5, below. To confirm your Class membership, you should review Exclusions A-K in the answer to Question 5 to ensure you do not fall within any of those categories.

2. What is this lawsuit about?

Plaintiff has sued Interactive Brokers LLC, Interactive Brokers Group, Inc. and Thomas A. Frank alleging that they acted negligently in designing, coding, testing, maintaining, and using the 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. Plaintiff alleges that Defendants negligently allowed the auto liquidation algorithm to cause one or more liquidation executions to occur at prices that were unintended by Defendants and economically injurious to Plaintiff and the Class members as a result of Defendants’ negligent design, coding, testing, maintenance, and use of the A-L Software. Defendants deny these allegations.

3. What is a class action?

In a class action, one or more individuals sue on behalf of other people with similar claims. These individuals are called the “Plaintiffs” or “Class Representatives.” Together, the people included in the class action are called a “Class” or “Class Members.” One court resolves the lawsuit for all Class Members, except for those who opt out from the settlement. In this Settlement, the Class Representative is Robert S. Batchelar. Everyone included in this Action are the Class Members.

4. Why is there a Settlement?

The Court did not decide whether the Plaintiff or the Defendants are right. Both sides have agreed to a Settlement to avoid the costs and risks of a trial, and to allow the Class Members to receive benefits from the Settlement. The Plaintiff and their attorneys think the Settlement is best for all Class Members.

Who is in the Settlement?

5. Who is included in the Settlement?

The Court has defined the Class this way:

• Other than those excluded in the subsections A through K below, all United States residents who at any time from December 18, 2013, to July 14, 2025, had margin accounts with IB, which accounts had trades executed by the A-L Software, for which the actual execution price of the trade was such that the ratio of [Margin Improvement]/[Cost to Liquidate] falls in the range greater than zero but less than three, excluding:

  1. Federal judges who preside or have presided over this case;

  2. The staff of federal judges who have presided over this case;

  3. The immediate family of federal judges who have presided over this case;

  4. Persons employed by any of the Defendants;

  5. Persons employed by any of the affiliates of any of the Defendants;

  6. Attorneys for any Defendant and other lawyers in those lawyer’s firms and the immediate family of those attorneys;

  7. Attorneys for Plaintiff or the Class and other lawyers in those lawyer’s firms and the immediate family of those attorneys;

  8. Persons who have litigated, arbitrated or negotiated a resolution of this claim with one or more Defendants related to liquidation of their margin account;

  9. Transactions on behalf of United States residents if those transactions were for the purchase or sale of currency (FX);

  10. Any liquidation transaction conducted by the A-L Software in “forced” or “immediate” mode, if any; and

  11. All Litigated/Excluded Accounts.

The identity of all Settlement Class members is known and the full list of Settlement Class members will be filed with the Court under seal. That list will be used to provide personal notice, pursuant to the Notice Plan, to each Settlement Class Member. The list of all Litigated/Excluded Accounts and the list of persons who have previously, individually litigated, arbitrated or negotiated a resolution of this claim with one or more Defendants related to liquidation of their margin account will also be filed under seal. After all timely opt-out notices have been receive a final list of Settlement Class Members will be filed with the Court under seal and that final list, after elimination of opt-outs shall be the members of the Settlement Class for all purposes, including compensation, release, res judicata, and otherwise.

If you received a Notice by email or postcard, then IB’s records indicate that you are a Class Member and included in the Settlement.

If you are not sure whether you are a Class Member, you can ask for free help any time by contacting the Settlement Administrator at:

Interactive Brokers Software Settlement
c/o Settlement Administrator
P.O. Box 25226
Santa Ana, CA 92799-9958
Email: info@InteractiveBrokersSettlement.com
Call toll free, 24/7: (833) 647-9087

You may also view the Settlement Agreement here.

6. What are my rights as a Class Member?

If you are a Class Member, you have the right to:

1. Do nothing and get paid. You will remain a Class member and receive $XX.XX or more, delivered in the manner you select by filing a payment election online here. If you are also entitled to release from debt IB claims you owe to it, you will also be released from $XX.XX in debt Defendants claim you owe them in connection with your Interactive Brokers, LLC account or accounts. To replace the $XX.XX place holders with values and view a version of the Notice that includes the estimated amount(s) of your specific payment and/or debt release, if applicable to you, please click here. You will also be giving up the right to make any claim in court, arbitration or otherwise regarding the Released Claims defined below, which means by doing nothing you would be giving up your right to sue for or arbitrate any claims related to the design, coding, testing, maintenance, and use of the A-L Software. (see Question 14);

2. Exclude yourself from the Class and Settlement and retain your right to sue or arbitrate against Defendants individually for claims arising from negligence in the design, coding, testing, maintenance, and use of the auto liquidation algorithm software (see Question 13);

3. Comment on or object to one or more of the Settlements, (see Question 15); or

4. Attend the Court's Fairness Hearing to speak in support of or against the Court's final approval of the Settlement, (see Question 19).

Importantly, you can select how you would like to receive your cash payment by clicking here.

7. What does the Settlement provide?

Yes. The Court’s definition of the Class has 11 exceptions, numbered A – K in Question 5.

The Settlement Benefits

8. What does the Settlement provide?

IB will establish a Settlement Fund of $5,000,000.00. The Settlement Fund will first be used to pay court-approved attorneys’ fees and costs, a Service Award payment for the Plaintiff, and the costs of administering the Settlement. The net remaining money will be paid out to Class Members.

The formula used to determine the specific amount of each payment is based on the proportion of the Class Member’s damages to the total damages calculated for all members of the Settlement Class, multiplied by the remaining cash balance.

If you are a Class Member, an estimated amount of your specific payment can be accessed in Question 6 and is included in the Notice sent to you by email and postcard.

If you are also entitled to release from debt IB claims you owe to it, then the amount of debt released can also be accessed in Question 6, and in the Notice that was sent to you by email and postcard.

If you have questions about these benefits, you can ask for free help any time by contacting the Settlement Administrator at:

Interactive Brokers Software Settlement
c/o Settlement Administrator
P.O. Box 25226
Santa Ana, CA 92799-9958
Email: info@InteractiveBrokersSettlement.com
Call toll free, 24/7: (833) 647-9087

9. What claims am I releasing if I stay in the Class?

If you stay in the class, you won’t be able to be part of any other lawsuit against IB about the issues that this Settlement covers. The “Releases” section of the Settlement Agreement (Paragraphs 12 – 14) describes the legal claims that you give up if you remain in the Class.

Receiving a Settlement Payment

10. How do I receive a Settlement payment?

As long as you do not opt-out of the Settlement (see Question 16), you will automatically receive a Settlement payment when the Court grants final approval (see Question 19).

11. Are there any important Settlement payment deadlines?

Because you do not need to do anything to receive a Settlement Payment, there are no deadlines involved.

12. When will the Settlement payments be issued?

The Court will hold a final approval hearing on June 17, 2026, to decide whether to approve the Settlement (see Question 19). If the Court approves the Settlement, there still may be appeals of that decision. We do not know if appeals will be filed, or how long it will take to resolve them if they are filed.

Settlement payments to Class Members will be distributed if the Settlements are approved, and after any appeals, if any are resolved. Updates regarding the Settlements will be posted on the settlement website printed below. Payments will not be distributed [and debt released] until the Court gives final approval to this settlement and any appeals have been resolved in favor of allowing the settlement to proceed. We cannot predict an exact date, please check back at the website printed below for periodic updates.

The Lawyers Representing You

13. Do I have a lawyer in the case?

Yes, the Court has appointed attorneys William M. Bloss and Christopher M. Mattei of Koskoff, Koskoff & Bieder, P.C.; Gary N. Reger of Orgain, Bell and Tucker, LLP; and L. DeWayne Layfield of the Law Office of L. DeWayne Layfield, PLLC, to represent you and other Class Members (“Class Counsel”).

14. Should I get my own lawyer?

Class Counsel and the Additional Plaintiff Counsel identified in the Settlement Agreement will be paid for their services in an amount approved by the Court and that amount will be deducted from the fund described in the answer to Question 6. If you want your own lawyer, you may hire one at your expense.

15. How will Class Counsel be paid?

Class Counsel will ask the court to approve up 33% of the Settlement Fund as reasonable attorneys' fees and up to $1.7 million to reimburse costs of litigation. These amounts will be paid from the Settlement Fund.

Class Counsel will also ask for a Service Award Payment of $100,000.00 for the Class Representative. The Service Award Payment will also be paid from the Settlement Fund.

Excluding Yourself from the Settlement

16. How do I opt out of the Settlement?

If you do not want to be part of the Settlement, you must formally exclude yourself from the Settlement. This is called a Request for Exclusion, and is sometimes also called “opting out.” If you opt out, you will not receive Settlement benefits or payment. However, you will keep any rights you may have to sue IB on your own about the legal issues in this case.

If you exclude yourself from the Class so that you can start, or continue, your own lawsuit against a Settling Defendant, you should talk to your own lawyer as soon as possible, because your claims may be subject to a statute of limitations, which means that your claims will expire if you do not take timely action. You need to contact your own lawyer about this issue.

If you exclude yourself, you are telling the Court that you do not want to be part of the Settlement. You will not be eligible to receive any Settlement benefits if you exclude yourself. The deadline to exclude yourself from the Settlement is May 27, 2026.

To be valid, your Request for Exclusion must have the following information:

1. the name of the Litigation: Batchelar v. Interactive Brokers, LLC, et al., Case No. 3:15-cv-01836, pending in the United States District Court for the District of Connecticut;

2. your full name, mailing address, telephone number, and email address;

3. personal signature; and

4. the words “Request for Exclusion” or a clear and similar statement that you do not want to participate in the Settlement.

You may only exclude yourself — not any other person.

Mail your Request for Exclusion to the Settlement Administrator at:

Interactive Brokers Software Settlement
ATTN: Exclusion Request
P.O. Box 25226
Santa Ana, CA 92799-9958

Your Request for Exclusion must be postmarked by May 27, 2026.

Commenting on or Objecting to the Settlement

17. How do I tell the Court if I like or do not like the Settlement?

If you are a Class Member and do not like part or all of the Settlement, you can object to it. Objecting means telling the Court your reasons for why you think the Court should not approve the Settlement. The Court will consider your views.

You cannot object if you have excluded yourself from the Settlement (see Question 16).

You must provide the following information for the Court to consider your objection:

1. the name of the Litigation: Batchelar v. Interactive Brokers, LLC, et al., Case No. 3:15-cv-01836, pending in the United States District Court for the District of Connecticut;

2. your full name, mailing address, telephone number, and email address;

3. information that proves that you are a Class Member (such as a notice you have received);

4. a clear description of all the reasons you object; include any legal support, such as documents, you may have for your objection;

5. if you have hired your own lawyer to represent you for this objection, provide their name, bar number, and contact information;

6. if you plan on calling witnesses or submitting documents at the Final Approval Hearing, provide a full list of both;

7. your signature (or, if you have hired your own lawyer, your lawyer’s signature).

For your objection to be valid, it must meet each of these requirements.

To be considered by the Court, you must file your complete objection with the Clerk of Court by May 27, 2026. You must also send a copy of the objection to the Settlement Administrator.

18. What is the difference between objecting and excluding?

Objecting is telling the Court that you do not like something about the Settlement. You can object to the Settlement only if you do not exclude yourself from the Settlement. Excluding yourself from the Settlement is opting out and stating to the Court that you do not want to be part of the Settlement. If you opt out of the Settlement, you cannot object to it because the Settlement no longer affects you.

The Court’s Final Approval Hearing

19. When is the Court’s Final Approval Hearing?

The Court will hold a final approval on June 17, 2026, at 1:00 p.m. Eastern Time, in the South Court Room of the United States District Court for the District of Connecticut, at 450 Main St, Hartford, CT 06118.

At the final approval hearing, the Court will decide whether to approve the Settlement. The Court will also decide how Class Counsel should be paid, and whether to award a Service Award Payment to the Class Representative. The Court will also consider any objections to the Settlement.

If you are a Class Member, you or your lawyer may ask permission to speak at the hearing at your own cost (see Question 17).

The date and time of this hearing may change without further notice. Please check this website for updates.

20. Do I have to come to the Final Approval Hearing?

No. Class Counsel will answer any questions the Court may have. You may attend at your own expense if you wish, but you do not have to.

If you file an objection, you do not have to come to the Final Approval Hearing to talk about it; the Court will consider it as long as it was filed on time. You may also pay your own lawyer to attend, but you do not have to.

If I Do Nothing

21. What happens if I do nothing at all?

If you do nothing, you will continue to be a Class Member, and will automatically receive a cash payment and may have debt released as described in the email or postcard notice you received and also described in the answer to Question 6. By staying in the Class you will give up your right to sue IB for the claims resolved by this Settlement (see Question 9).

Getting More Information

22. How do I get more information?

This website and the Notice are a summary of the proposed Settlement. The full Settlement Agreement and other related documents are available on the Important Documents page.

If you have additional questions, you can ask for free help any time by contacting the Settlement Administrator at:

Interactive Brokers Software Settlement
c/o Settlement Administrator
P.O. Box 25226
Santa Ana, CA 92799-9958
Email: info@InteractiveBrokersSettlement.com
Call toll free, 24/7: (833) 647-9087

You can obtain copies of publicly filed documents by visiting the office of the Clerk of the Court at 450 Main St, Hartford, CT 06118.

Do not contact the Court or Clerk of Court regarding this Settlement.