First Lawsuit against Worldco (worldcon)

Discussion in 'Prop Firms' started by bmwstox, Oct 23, 2003.

  1. zdreg


    not true- firm capital other than trader capital contribution might cover most liabilities and leave enough to return trader contribution
    #11     Oct 27, 2003
  2. I am certainly not a proponent of Yucca Mountain for nuke disposal, but in a way, it's better to know where it is than to live right next to it in your local area...especially when it is not very well contained (in comparison anyway).

    Now, with the horrible chain of fires in California again, it seems that nothing is safe.

    Move to Nevada, help vote against Yucca Mt. (not sure that will help).

    #12     Oct 27, 2003
  3. Lawsuit talk has to be the most worthless pursuit on the planet.

    You gotta protect yourself - getting your $ back from a prop firm - don't even depend on it in the least. Even if you have a legit legal case, it might be delayed so long you still lose out.

    So, only two things to remember - keep your account at the firm's minimum requirements, and DON'T TRADE WITH MONEY YOU CAN'T AFFORD TO LOSE.
    #13     Oct 29, 2003
  4. I have to agree with you about the chances of getting any money back in a timely manner from simply filing a lawsuit. And, yes, you must always protect yourself.

    The only benefit a publicized lawsuit might produce is helping others become aware of these facts. Knowing who you're doing business with and (for the millionth time) everything, financials especially.

    #14     Oct 30, 2003
  5. The Bruans are protected by the LLC agreement. I hope the traders who lost money there win the law suit but I don't hink prospects are good....
    #15     Oct 30, 2003
  6. Nobody, including branch owners at WorldCo, knows whether or not traders will get back their capital. It depends on many things, including but not limited to, negotiating real estate lease agreements, equipment lease agreements, and selling software. So unless you have inside information about what is going on at WorldCo, can you please stop speculating about whether traders will get their capital back?
    I know that traders at other prop firms find enjoyment at seeing WorldCo go under, but maybe it should serve as a wakeup call to you guys. WorldCo could have stayed afloat, albeit losing money, for the next two years, but they decided to exit the business, so as not to erode capital any further. I highly doubt that WorldCo is the only firm in the industry losing money. Why don't you guys concentrate on the health of your respective firms, instead of speculating on trader capital accounts and lawsuits at WorldCo?
    #16     Oct 31, 2003
  7. I was only commenting on the legailty of the issue. I was trying to say that IF traders file a suit against the firm, THEN the likliehood of them getting hteir money back isn't very good as the LLC contract protects the partners. That is all I was saying. Maybe there will be no suit, but my comment was addressing the situation in which there is one. Sorry if this bothers you. I realize my comment implies that the suit will in fact be filed. sorry about that

    #17     Oct 31, 2003
  8. Ebo


    I saw Gabe's ad on the F train this morning!
    #18     Oct 31, 2003
  9. Here's how it could go..

    Alot of attention and legal stuff goes on, attracts attention and the SEC or congress decides that professional daytrading firms is the problem, so they ban the LLC trading structure (or highly regulate it), and as a result we all lose out.

    I'm sorry but some guy who loses money trading and then goes after the firm makes me want to puke. That's the worst kind of a**hole. Typical losers trying to blame others.

    If Worldco broke their LLC agreement and/or broke the law then fine go after them, but typically a real fraudster they know their contracts word for word, if you sign it you are to blame.
    #19     Oct 31, 2003
  10. can't argue with that. One would be well advised to ALWAYS have an attorney present when one signs a contract (it may cost say $100-$500 to have an attorney look over a contract and advise you as to the fine print).
    #20     Oct 31, 2003