As a result of the inherent volatility of the stocks during the short squeeze, the nscc requested that defendants pledge a substantial amount of additional cash as collateral when executing the trades instead of doing so. However, this is where it gets interesting. However, on january 28, 2021 defendant apex decided to limit its exposure by requiring the broker dealers to restrict their investors from buying, but not selling any shares of amc, gme and costs. My name is tom nash and i quit my corporate job as a senior financial analyst to break down companies for you there's one thing you need to know about me: i don't take from anybody hey what's up, this is tom and i want to get straight into It because this is way too important.

This is huge, don't want to waste a single second check this out. We have a piece of litigation just coming out that changes everything i have to talk to you about it, but first let me explain what it pertains to now. If you follow the amc or gamestop story, you remember the halting of the trading that happened in january. In the beginning of the year, where everything just got shut down midway through this massive game, stop run basically stopping the momentum, and for months we had this nagging feeling that something was wrong about this.

That didn't feel right. We had some congressional hearings. We had some investigations, but nothing really panned out until now, so you have apex clearing a firm. You probably never heard about so apex.

Clearing is one of the clearing houses for brokerages. Now a lot of brokerages do their own self-clearing, such as robinhood. However, a lot of other brokerages such as weeble but there's way more clients in that use, external clearinghouses and right here you can see all the list of clients of apex, as you can see right here below, you probably all know weibull but there's other clients as Well, as you can see here, public everybody using them so far, so go stash, stockpile, there's a lot of different clients. Apex clearing are going public through a spec, and this is how we found out.

The company is actually going public through a spac with northern star investment corp. As you can see right here, the spec deal apex clearing holdings will go public via a merger with northern star investments at a valuation of 4.7 billion, the 5 billion valuations back massive. Now they just filed the prospectus and in that prospectus they have to disclose, if there's any pending litigation against them, that's just the law and hidden way inside in page 186, you have a paragraph that changes everything i want to show you and right here on the Screen is the perspectives they just filed, which has that thing i want to show you check it out. So this is the legal proceedings paragraph and what it says here is just mind-blowing.

Apex is a defendant in a series of class actions, basically alleging that multiple brokerages had a conspiracy in violation of antitrust laws to prevent retail customers from operating and trading amc, gme and other stock. I'm not going to bore you with this, not because i don't want to, because i have something better i dug in. I did my research and i actually found the full lawsuit. We don't want to be just looking at this.

This is what the company wants us to see. Let's look at the actual lawsuit, and i read it already and when you see it, your eyes are going to pop out of your sockets. You've never heard anybody talk like this about the whole january gamestop mc crisis. Okay, so let's go through the actual class action lawsuit, because this is fascinating nature of the action.

This is a class action brought against apex clearing corporation and interactive brokers, collectively defendants for prohibiting the broker, dealers and investors from buying multiple, publicly traded socks, including, but not limited to amc, blackberry, express, gamestop and costs. Now, let's look at the factual allegations, because this is the most interesting part on around january 11, 2021 stocks of amc, blackberry games, stopping costs as well as express began to rise, as retail investors rallied together to purchase long position in an effort to combat the massive Shorts, the hedge funds and institutional investors had placed on these stocks check this out in order to execute a trade retail broker. Dealers use clearing firms and clearing houses to guard against the risk of default if either buyer or seller is unable to execute the trade right here you have basically the chart of how clearing houses work and how brokerages work and how the whole transactional circulation works. That's pretty basic now check this out, specifically clearing houses require their members, banks and brokers to be well capitalized to deposit collateral and to pay into a default fund.

These deposits are determined, amongst other things, based on the volume of trades placed by a broker and the volatility of the stocks being traded as a result of the inherent volatility of the stocks during the short squeeze, the nscc requested that defendants pledge a substantial amount of Additional cash as collateral when executing the trades instead of doing so. However, this is where it gets interesting. However, on january 28, 2021 defendant apex decided to limit its exposure by requiring the broker dealers to restrict their investors from buying, but not selling any shares of amc. Gme and costs the ban lasted for approximately four hours until defendant, apex finally removed the restriction at 3 pm.

So, instead of following the collateral requirement from the national securities clearing corporation, the nscc, they pretty much just limited the purchasing of amc, gme and costs. For instance, when asked why weibull decided to restrict the stocks anthony deaner, ceo of the trading app stated - and i remember that there was an interview they gave to benzinga live, i watched this. I didn't make the decision the decision was made for us. He continued to say that i hope there is an investigation and some of you might say: well, maybe they didn't have the cash.

Maybe epics didn't have the cash. So look at number 15. in an interview with financial planning, trisha rachel president defending apex indicated that the defendant apex had had sufficient resources to meet the collateral requirements of the nscc. Surprise.

Surprise evidencing that their decision to restrict the stocks was arbitrary, capricious and self-serving. So you just saw it with your own eyes. The text does not lie. You just saw it.

We actually now have confirmation that lawsuits are coming are in place, are happening against the participants of the short squeeze that happen in january with the whole halting of trading. This is really important, because this means that there's actually a penalty. This means that now with amc that can never happen again, because now you have a penalty system, they know if they ever do this again, we'll know, because now we can figure it out which we couldn't in january. Also.

We know that there's a way to get in on these class action lawsuits and cause them massive damage. Now this thing is off the table because of these lawsuits. We now know that the amc short squeeze is wide open without them halting trading. They can't ever do this again, just say: well, we didn't know, because now they'll have to be ready to answer some tough questions which i'm sure they want.

So this is the proof we've been waiting for as far as is this thing real. Can this thing happen now? Listen, i'm not a prophet. I don't know if the short squeeze will or will not happen. I have no idea, but halting trading to cool things off like they did in january, is off the table, because what we just learned - and that is important, as always a huge shout out to the channel members the patrons.

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Five bucks a month you can get in get this other companies get out five bucks hey. Why not? Thank you so much for everybody. We'll see you guys. Next, video team stock, other meme stocks, bean stocks, meme stocks, another meme stock back in march, your next guest came on this very show.

After slapping a penny price target on amc shares is no value to equity holders. People can buy it because they're excited about going back to theaters, but there is no value to this company and ultimately, that's what's going to matter. Is they can't pay off their debt ever.