On April 20, 2020, the only date in history when oil prices fell below zero, at 15:29, a British investor sent a message to a group of colleagues: “We pushed each other for a moment like this for years and we succeeded guys”
A few minutes ago On the other hand, another investor, in a message he sent to the same Whatsapp group, said, “Please don’t tell anyone what happened today, friends.”
These correspondences belonging to the group, which became famous in the investor world as the “Essex Boys” and earned approximately 700 million dollars on the day of the oil collapse, enabled a judge in the USA to give the green light to the lawsuit to be filed against the members of the group in question. Details of the lawsuit, which was filed in August 2020, were revealed on Tuesday.
Mish International Monetary Inc. In the lawsuit filed by Vega Capital London Ltd. It is alleged that 12 people associated with the company were secretly breaking anti-monopoly laws and manipulating the markets in order to bring the markets down.
Mish firm, which took a buyer position that day, claims to have suffered a loss. The defendant, aged between 20 and 60, alleges in their defense that they are independent investors who follow “unmissable” signs in the market.
US judge Gary Feinerman ruled that eight of the 12-person group could be sued, rejecting the investors’ demands for the case to be dropped.
“There are highly connected transactions between individuals”
In his decision, the details of which were explained, the judge also quoted the messages between investors, “In addition to the content of their communications, there are highly connected transactions between many, “It leads to a very plausible conclusion that there is an agreement between them,” he said.
Judge Feinerman dismissed the case against the four investors in the group and Vega Capital.
According to research by Bloomberg News, the subjects of the lawsuit were brought together by an experienced futures investor named Paul Commins, known as “cuddles”, who works at Vega Capital outside of London, mostly living in the close vicinity of Essex and known as “cuddles”. .
According to the lawsuit, looking at the transaction history that took place on 20 April 2020, the transactions made by a few of these 12 people were 95% simultaneous in the same direction. On the same day, between 13.00-13.30, 29.2 percent of West Texas oil futures transactions were carried out by these people.
WTI oil depreciated 99 dollars in one day
West Texas oil futures, which started the day at $56 with the group’s transactions, was trading at minus $37 when the markets closed.
According to the information in the case file, it was stated in the messages in the “Legends XXX” group that investors were trying to lower prices and inform each other about the positions they took.
One investor said, “Keep selling every five points,” while another said, “You just have to keep selling.” “Everyone will open positions and have ammo,” another writes, while another investor states, “This is crazy, I want to see West Texas oil prices.”
With the judge’s decision, the plaintiff will have greater access to the group’s communications and transaction records. In addition, these investors will have the opportunity to testify under oath.