Certain U.S. Interactive Brokers margin customers whose positions were liquidated by the firm’s automated software between December 18, 2013 and July 14, 2025 are covered by the Interactive Brokers margin liquidation class action settlement, which provides up to $5 million in payments plus about $1.8 million in forgiven debts. The court granted final approval on June 17, 2026, and class members are identified from Interactive Brokers’ records, with no claim form.
Current Status
The court granted final approval on June 17, 2026, closing a case that began in 2015. There is no claim form: class members were identified from Interactive Brokers’ records and sent personal notice by the settlement administrator, Simpluris. The deadlines to opt out or object passed on May 27, 2026. The court documents OCA reviewed do not give a payment date.Free settlement alerts
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What Changed Recently?
Interactive Brokers, LLC, Interactive Brokers Group, Inc. and executive Thomas A. Frank settled Batchelar v. Interactive Brokers, LLC, No. 3:15-cv-01836, in the U.S. District Court for the District of Connecticut. Judge Alvin W. Thompson granted preliminary approval on January 27, 2026 and final approval on June 17, 2026.The lawsuit, filed December 18, 2015, alleged that flaws in the computer system Interactive Brokers uses to automatically close out positions in under-margined accounts caused customers to lose more than necessary when their positions were liquidated. Most of the original claims were dismissed, but in 2018 the Second Circuit sent the negligence claim back for further proceedings, and in August 2023 the court certified a class. In its quarterly report to the SEC, Interactive Brokers says it will pay up to $5 million to the class and forgive about $1.8 million of debts owed by certain class members, with no admission of liability. Interactive Brokers vigorously denied the claims, and the court’s order states the settlement is not a finding or admission of liability.
Who Qualifies?
The settlement class is defined in the court’s preliminary approval order. It covers U.S. residents who had margin accounts with Interactive Brokers at any time from December 18, 2013 to July 14, 2025, with trades executed by the firm’s automated liquidation software, where the actual execution price meant the ratio of margin improvement to cost to liquidate was greater than zero but less than three.In plain terms, that is a subset of customers who were auto-liquidated: the court’s formula picks out liquidation trades whose prices fell inside a defined band. Being liquidated by Interactive Brokers during the period does not by itself put someone in the class. Excluded are currency (FX) trades, liquidations run in “forced” or immediate mode, people who already litigated, arbitrated or negotiated their own liquidation claim, Interactive Brokers employees and those of its affiliates, the lawyers on both sides, and the judges and their families and staff.
The court says the identity of every class member is known from Interactive Brokers’ records, and the class list was filed under seal. Members were sent personal notice by email or mail.
How Much Can You Get?
According to Interactive Brokers’ quarterly report, the company will pay up to $5 million to the class, and its brokerage subsidiary will forgive approximately $1.8 million of debts owed by certain class members. The final payment and debt forgiveness totals depend on how many people opted out.Under the court’s order, each member’s damages are calculated from the company’s data on that person’s liquidation trades, so amounts vary. No average or per-person estimate has been published, and attorneys’ fees, litigation expenses and service awards for the class representatives were subject to the court’s approval.
What Proof or Notice ID Is Required?
None. There is no claim form in the process the court approved. The court’s order says each member’s damages can be calculated from data Interactive Brokers maintains, and notice went to members by email or mail using the contact details in the company’s records.What Is the Deadline?
There is no claim deadline. The only deadlines in the case were for class members who wanted out or wanted to object: requests for exclusion and objections had to be postmarked or filed by May 27, 2026, and those dates have passed.How Do You Take Action?
There is nothing to file. Class members who have questions about their notice or payment should use the contact information in the notice they received from Simpluris, the court-appointed administrator. OCA could not locate a public settlement website address to link here. Any message asking for a fee or a brokerage password in exchange for an Interactive Brokers settlement payment is not from the court process.What Happens Next?
With final approval granted on June 17, 2026, payments and debt forgiveness follow under the settlement agreement once the approval becomes final. The court documents OCA reviewed do not give a payment date, and OCA will update this page if one is announced.Sources and Verification
- Batchelar v. Interactive Brokers, LLC, No. 3:15-cv-01836 (D. Conn.) — CourtListener docket, showing the case terminated June 17, 2026
- Order Granting Preliminary Approval of Proposed Settlement (ECF No. 304, January 27, 2026), with the class definition, administrator, deadlines and hearing date
- Interactive Brokers Group, Inc. Form 10-Q for the quarter ended March 31, 2026, Note 13, describing the settlement terms
OpenClassActions.com is a consumer news site and is not the settlement administrator or a law firm.
Questions
Do I need to file a claim in the Interactive Brokers settlement?
No claim form is part of the process described in the court's orders. Class members are identified from Interactive Brokers' own records, each person's damages are calculated from the company's trading data, and the administrator, Simpluris, sends personal notice by email or mail. The court-approved notice plan relies on that class list rather than on claims.
Who is in the Interactive Brokers liquidation class?
U.S. residents who had Interactive Brokers margin accounts at any time from December 18, 2013 to July 14, 2025 with trades executed by the firm's automated liquidation software, where the execution price fell in a range the court defined (a ratio of margin improvement to cost to liquidate greater than zero but less than three). Currency (FX) trades, liquidations in forced or immediate mode, people who already resolved their own liquidation claims and employees are excluded. Not every customer who was auto-liquidated is in the class.
How much will Interactive Brokers class members get?
The total is up to $5 million in payments to the class plus about $1.8 million in forgiven debts owed by certain class members, according to Interactive Brokers' SEC filing. Each person's amount is calculated from the company's data on their liquidation trades. No per-person figures have been published, and the final payment and debt forgiveness totals depend on opt-outs.
When will the Interactive Brokers settlement pay?
The court granted final approval on June 17, 2026. The court documents OCA reviewed do not give a payment date. Payments under class settlements generally follow once the approval order becomes final and any appeal period passes; class members should watch for messages from Simpluris, the court-appointed administrator.
Did Interactive Brokers admit wrongdoing?
No. Interactive Brokers says the settlement is made with no admission of liability, and the court's order states that the settlement is not a finding or admission of liability. The company vigorously denied the claims.
