I wonder if the USO lawsuits may apply to the margin calls on these chosen stocks.
From another thread, a judge rules on USO going negative and a margin call.
ph1l said:
https://casetext.com/case/lindstrom-v-td-ameritrade-inc Some quotes from the judge...
The problem for Lindstrom is that he fails to identify any duty that TDAFF owed to Lindstrom to inform him of market trends. Futures trading is risky, and TDAFF made Lindstrom aware of that before he could even sign up for an account. Moreover, contemporaneous newspaper articles referenced in TDAFF's Motion make clear that the possibility the oil prices could fall into the negatives was widely reported in the media.
Lindstrom has cited no authority to suggest that an investment platform has an affirmative duty to make its users aware of publicly available information that may negatively affect their investments. Indeed, TDAFF has no fiduciary obligations to Lindstrom.
The Futures Client Agreement, however, "authorizes [TDAFF], without prior notice and in its sole discretion, to liquidate any assets held by TD Ameritrade Clearing, Inc. in a Securities Account to eliminate [any] margin deficiency or insecurity." (Dkt. 17 at p. 37.) That is precisely what happened here; Lindstrom's account became under-margined as the futures prices continued to drop, so TDAFF exercised its discretion to liquidate. Lindstrom fails to identify any principle that would support imposing liability on TDAFF for exercising its right to liquidate securities held in under-margined accounts.
Lindstrom has failed to state any of the elements of a securities fraud claim under 7 U.S.C § 9 and 17 C.F.R. § 180.1(a)(3).
A good read...But close the door with no distractions.
