Deadlines Stayed in Interactive Brokers Trading Software Lawsuit

The Connecticut District Court has agreed to stay all procedural deadlines in a longstanding engineering negligence lawsuit involving Interactive Brokers, LLC. The order was by Judge Alvin W. Thompson on August 19, 2025.

The decision follows a joint motion by the parties requesting that “the Court suspend all Scheduling Order deadlines pursuant to a settlement in principle on agreed terms between Plaintiff and Defendants.” The court’s order effectively pauses the lawsuit’s procedural timeline as the parties work toward finalizing a potential settlement.

Deadlines Stayed in Interactive Brokers Trading Software Lawsuit

The case centers on Robert Scott Batchelar, who claims that Interactive Brokers’ trading software was negligently designed. According to Batchelar, an automatic liquidation of positions in his account resulted in losses “thousands of dollars higher than they should have been.”

Batchelar initially filed the complaint in December 2015, asserting claims including breach of contract, negligence, and commercially unreasonable liquidation of pledged collateral. His current theory of liability focuses on the firm’s Auto-Liquidation Software. He alleges the software was negligently designed, coded, maintained, and used, allowing liquidation transactions to be executed on terms less favorable to the customer than the terms authorized by the software itself.

Over the course of the litigation, Interactive Brokers sought to limit discovery, including filing a motion for a protective order to prevent the deposition of company founder Thomas Peterffy. On July 17, 2025, the court denied the motion, allowing the deposition to proceed.

With the stay of all deadlines now in place, both parties have time to finalize settlement discussions. The development marks a significant procedural pause in a case that has spanned nearly a decade, highlighting the complexities of software-related liability in financial markets.

Observers note that the settlement, if finalized, could provide insights into how major trading platforms address claims related to automated systems and customer losses. The outcome may also influence similar litigation involving the design and operation of algorithmic trading tools.

Company Overview

Interactive Brokers caters to diverse requirements, offering competitive fees alongside a wide array of trading options such as stocks, ETFs, options, futures, and other global assets. It distinguishes itself as a top-tier brokerage, particularly appealing to traders and investors seeking a straightforward trading experience. With Interactive Brokers’ user-friendly platform, users can execute trades seamlessly, benefiting from competitive spreads that enhance cost-effectiveness. 

Discover more in our Complete Review.