Judge Orders Interactive Brokers Chairman Thomas Peterffy to Testify

Judge Alvin of the US District Court for the District of Connecticut has denied a motion for a protective order filed by Interactive Brokers, paving the way for the deposition of its Chairman and former CEO, Thomas Peterffy.

The decision, issued on July 17, 2025, comes amid a long-running legal battle initiated by Robert Scott Batchelar, who has accused Interactive Brokers, LLC of negligence in the design and operation of its trading software. Batchelar claims that the firm’s Auto-Liquidation Software executed trades in his account on terms far less favorable than its programming allowed, causing him to lose thousands of dollars.

Judge Orders Interactive Brokers Chairman Thomas Peterffy to Testify

Batchelar initially filed the lawsuit in December 2015, alleging breach of contract, negligence, and commercially unreasonable liquidation of pledged collateral. His current theory centers on the negligent design, coding, and use of the auto-liquidation system.

Interactive Brokers had to block Peterffy’s deposition, arguing that the Chairman—due to his senior role—should be shielded under the legal standard for “apex depositions.” However, Judge Thompson ruled that the plaintiff had met the legal threshold for deposing a high-level executive.

“Depositions of senior executives are permissible when such senior executives have had direct involvement in the underlying claims, or if the subordinates are unable to testify in a meaningful fashion at their depositions,” the judge noted in his order.

The court’s review of Batchelar’s filings and supporting documentation led to the conclusion that Peterffy’s involvement may be relevant to the core allegations surrounding the software’s development and use.

Originally scheduled for July 9, 2025, the deposition must now proceed promptly. The ruling marks a significant step forward in a case that has dragged on for nearly a decade and raises questions about leadership accountability in algorithm-driven trading systems.

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. 

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