Interactive Brokers Automated Liquidation Algorithm Class Action Settlement
U.S. residents who had an Interactive Brokers margin account liquidated by the automated liquidation algorithm software between December 18, 2013, and July 14, 2025.
Settlement Closed
Who’s Eligible
You may be eligible for the Interactive Brokers settlement if you:
- Were a United States resident at the time of the transaction(s)
- Had a margin account with Interactive Brokers, LLC at any time between December 18, 2013, and July 14, 2025
- Had at least one trade executed in that account by the Automated Liquidation Algorithm Software (A-L Software)
- 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
- Received a notice by email or postcard identifying you as a Class Member based on Interactive Brokers’ records
Eligible States
Claim Deadline
What You Need to Do to Get Paid
To get paid from the Interactive Brokers settlement:
This is an automatic distribution settlement. You do not need to file a claim to receive a payment. As long as you do not opt out of the settlement, you will automatically receive a cash payment after the court grants final approval.
You can log in to the settlement website using the Unique ID and PIN printed on the notice you received to check your estimated payment amount and update your payment method or mailing address.
If you did not receive a Unique ID and PIN but believe you are a class member, contact the Settlement Administrator at info@InteractiveBrokersSettlement.com to request one.
The opt-out deadline is May 27, 2026. If you do nothing before that date, you remain in the class and will receive your payment automatically once the settlement is finalized.
No proof of purchase required. Class Members automatically receive payment based on Interactive Brokers’ records identifying margin account liquidations executed by the Automated Liquidation Algorithm Software between December 18, 2013 and July 14, 2025.
Settlement Payout
Interactive Brokers settlement payments vary by class member. Each person’s payment is calculated based on their proportional share of the total damages across all class members, applied to the net settlement fund remaining after attorneys’ fees (up to 33% of the $5,000,000 fund), litigation costs (up to $1.7 million), and a $100,000 service award to the class representative are deducted.
Your estimated individual payment amount was included in the notice sent to you by email or postcard. You can also check your amount by logging in with your Unique ID and PIN at the settlement website. Some class members may also be entitled to debt release in addition to a cash payment.
Payments will be distributed after the final approval hearing on June 17, 2026, and after any appeals are resolved. The settlement website will post updates on timing.
- Attorneys’ Fees: Up to 33% of Settlement Fund
- Litigation Costs: Up to $1,700,000
- Service Award Payment (Class Representative): $100,000
- Settlement Administration Costs: Deducted from Fund
- Net Remaining: Distributed to Class Members
Settlement Documents
Background of the Lawsuit
Plaintiff Robert S. Batchelar sued Interactive Brokers LLC, Interactive Brokers Group, Inc., and Thomas A. Frank, alleging they were negligent in designing, coding, testing, maintaining, and using automated liquidation algorithm software (the “A-L Software”). The lawsuit claims the software was used to liquidate customer margin accounts at prices that were unintended by the defendants and financially harmful to affected customers.
The case, filed in the United States District Court for the District of Connecticut (Case No. 3:15-cv-01836), covers trades executed by the A-L Software between December 18, 2013, and July 14, 2025, where the execution price resulted in a specific ratio of margin improvement to liquidation cost. The class covers U.S. residents whose margin accounts were affected by those trades.
Interactive Brokers denies all allegations. The defendants maintain the A-L Software was properly designed, coded, tested, maintained, and used, and dispute that any negligence occurred. Both sides agreed to the $5,000,000 settlement to avoid the costs and uncertainty of continued litigation. The court has not decided who was right. For more information, visit the official settlement website.
Frequently Asked Questions
Who is eligible for the Interactive Brokers Automated Liquidation Algorithm Settlement?
Do I need to file a claim to get paid from the Interactive Brokers settlement?
How much will I receive from the Interactive Brokers Automated Liquidation Algorithm Settlement?
When will Interactive Brokers settlement payments be sent out?
What is the Interactive Brokers Automated Liquidation Algorithm Settlement about?
What is the deadline to opt out of the Interactive Brokers settlement?
What if I lost my Unique ID and PIN for the Interactive Brokers settlement?
Can I object to the Interactive Brokers Automated Liquidation Algorithm Settlement?
Settlement Administrator
Interactive Brokers Software Settlement
c/o Settlement Administrator
PO Box 25226
Santa Ana, CA 92799-9958
Case Details
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Disclaimer
The information on this website is free to access and provided for general educational and informational purposes only. It is not legal advice. We summarise settlement information from official notices, court documents, settlement websites, administrators, and other primary sources where available.
Settlement details and deadlines may change. Always refer to the official settlement website or consult a licensed attorney for advice specific to your situation.
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