TD Ameritrade Lawsuit _ ZANNINI v. AMERITRADE HOLDING CORP _ Execution Trade Delay
In paragraph 1 of the “Nature of the Action” section, appellants allege that they seek to recover damages caused by Ameritrade’s violations of Nebraska’s Consumer Protection Act and the common law. In paragraph 3 of the “Nature of the Action” section, appellants allege generally that Ameritrade’s system was “overburdened, causing frequent inability to place trades and substantial delays in the placement and execution of trades.” In paragraph 25 of the “Substantive Allegations” section, appellants allege that they entered into a contract with Ameritrade.
In paragraph 28 of the “Substantive Allegations” section, appellants allege, inter alia, that during the class period they
encountered difficulties in placing trade orders via the internet[, that] the automated telephone trade services were not available[, and that] delays occurred when [they tried] to reach brokers. [Appellants] also experienced significant lag times as a result of Ameritrade’s untimely execution of orders․
Appellants allege that this delay resulted from an aggressive and successful marketing campaign in which Ameritrade’s subscriber base increased dramatically and that Ameritrade’s systems were unable to handle this growth. According to paragraph 41 of the “Substantive Allegations” section,
The delays associated with placing and executing trades were the result of [Ameritrade’s] emphasis on marketing and sales to increase the subscribership. Meanwhile, [Ameritrade was] neglecting Ameritrade’s systems and existing subscribers because the systems could not handle the additional volume. [Ameritrade] at all relevant times knew of the problems and failed to adequately remedy the difficulties, warn subscribers of the difficulties, or adequately provide subscribers with the means by which to avoid such problems.
In paragraph 45 of the “Substantive Allegations” section, appellants allege that they have been “consistently unable to utilize Ameritrade’s [s]ervices as a result of [Ameritrade’s] over-marketing and failure to maintain adequate systems.” Paragraph 45 contains four subsections in which it is alleged that each of the four named plaintiffs suffered financial loss with respect to particular trading orders identified therein.