Judge allows investor to take ‘path-finder’ case

One of 35 investors who claim they were defrauded in an alleged multi-million euro electronic-trading scam can continue his or her claim as a “path-finder” case, a High Court judge has ruled.

Last week, Mr Justice Brian O’Moore said the combined action of the 35, involving investments they made with the liquidated Irish registered firm, Greymountain Management Ltd, could not continue.

Under court rules, each investor’s action must be brought as separate claims, he found.

He adjourned for a week his decision on whether to strike out or stay the actions.

On Thursday, he ruled 34 of the 35 claims should be struck out and one plaintiff should be nominated to proceed with what could be a path-finder case for the others should they wish to follow suit.

Application

He will next week deal with an application by Marcus Dowling , for the 35, concerning whether there should be a stay on the costs of the case so far.

Rossa Fanning SC, for the defendants, opposed a stay saying it was possible his side may never cross swords with some of the plaintiffs again.

The 35 had sued Greymountain, its Dublin-based directors, Ryan Coates and Liam Grainger, and alleged shadow directors, brothers Jonathan and David Cortu, based in Israel.

The investors claim they believed they were investing in a complex trade known as “binary options” when in fact, they say, the software system their trades were conducted on was rigged to ensure they lost their money. The investors, who come from the US, Canada, Singapore, UAE and the UK, claim they were induced by the defendants to open binary accounts with false claims they would earn significant profits.

The claims are denied.