IBKR Fails to Block Thomas Peterffy’s Deposition in Ongoing Suit
Interactive Brokers is facing a long-running legal dispute over the design of its trading software. Robert Scott Batchelar, a former customer, claims the software caused excessive losses during the auto-liquidation of his account. In a recent development, the Connecticut District Court denied Interactive Brokers’ request to block the deposition of its Chairman and former CEO, Thomas Peterffy.
Background of the Lawsuit
Batchelar filed the lawsuit in December 2015. He initially brought claims for breach of contract, negligence, and commercially unreasonable liquidation of pledged collateral. His central allegation is that Interactive Brokers’ Auto-Liquidation Software had poor designs and operated in a way that harmed customers. Over time, all claims except engineering negligence were dismissed. The case now focuses solely on whether the software’s design and execution were negligent.
Interactive Brokers’ Motion for Protective Order
Interactive Brokers asked the court to prevent the deposition of Thomas Peterffy. The company argued that Peterffy had no role in creating, coding, or maintaining the liquidation software. It stressed that IBKR employs over 700 software engineers. Seven relevant engineers had already been deposed. Peterffy lacked any unique knowledge about the software or the alleged malfunction, according to the firm. And also, his responsibilities were limited to high-level management.
Court’s Ruling and Reasoning
On July 17, 2025, Judge Alvin W. Thompson denied the motion for a protective order. The court found that Batchelar had met the legal standards for an apex deposition. Judge Thompson explained that such depositions are valid when senior executives were directly involved in the issues. It’s also admissible when subordinates cannot adequately answer key questions. The court ruled that Peterffy’s deposition could proceed.
Next Steps
Peterffy’s deposition was originally for July 9, 2025. Both parties are expected to move quickly to complete the deposition with the protective order denied.
About Interactive Brokers
Interactive Brokers (IB) is a global brokerage firm. It provides trading platforms to trade stocks, options, futures, forex, bonds, and funds. IB has low-cost trading, comprehensive market access, and decisive analytical tools. Also, it provides real-time pricing and risk management on trading floors.
Summing Up
The court’s decision shows that even high-level executives may need to testify if they hold relevant knowledge or if prior depositions fall short. It may shape how future courts handle executive depositions in technical negligence lawsuits.
Register your company now feature on our homepage!
