I have been trading currencies on line for over 3 years successfully.
Recently,(Febraury) I changed brokers, having been "attracted" by
their claim of quick
trading executions. The software proved to be flawed, requiring
ongoing modfification. As a result, trades were not registered,
executed or cancelled, causing serious financial losses. The broker
does not accept any responsibility. I am seeking to file a lawsuit
trying to recover the losses plus any other damages deemed suitable.
There are many other traders with this broker  who are suffering the
same treatment. Are there any legal precedents or current cases where
traders are suing their brokers for "faulty" trading software...or
where software is inadequate to handle large trading volume causing
losses to the traders??? The broker acknowledges software problems but
denies being "at fault".  Obviously there is a huge amount of
money at stake (in this e-business, FX and Stocks).  Letting clients
trade knowingly with less than "acceptable software performance"
borders on negligence or even smells of dishonesty.
Any specific trading software cases where on-line brokers were
successfuly sued
for damages.......or negligence by not making traders aware that
sofware failures could cause financial loss?? Current cases before the
courts, or settlements by brokers without having gone to trial?? FX
trading merchants (foreign exchange brokers) with records or
judgements against them??

kickingbutt-ga, 

What a nightmare! I didn't have much luck on chasing down specific
lawsuits, beyond headline items, but I'm posting what I did find as a
comment and hopefully a legal researcher will finish it off for you.

The short answer is that there are many ongoing lawsuits related to
online brokers causing financial losses, though sorting out actual
software bugs from other execution problems may be difficult. The site
that covers it all is the Online Investor Complaint center. They have
news items about ongoing lawsuits, and what really impressed me, a
list of financial media contacts so you can get the word out.

http://www.investingcomplaints.com/index.html

Amongst other resources, they offer a great referral list of law
firms, along with their qualifications for helping online investors
recover money, namely the big suits they are involved in or have
settled.

http://www.investingcomplaints.com/legalcontacts.html

The NASD site is worth a visit if you're interested in giving
arbitration a shot before starting down the lawsuit path.

http://www.nasdadr.com/

If you're willing to read up about how an online broker SHOULD
implement their systems, here's a great article from the office of the
NY Attorney "General Risk Management Practices for "Mission Critical"
Information Systems". Although this study was done several years ago
it's incredibly on target about the basics, and would give you an idea
of what questions to ask to see if your broker acted responsibly when
they set up their system.

http://www.oag.state.ny.us/investors/1999_online_brokers/risk_management.html

Another article from the same series describes some software and
hardware design deficiencies.

http://www.oag.state.ny.us/investors/1999_online_brokers/identified_deficiencies.html

One site I more or less stumbled across is the Simpson, Thacher and
Bartlet firm daily update. These cases are keeping lots of lawyers
busy.

http://www.stblaw.com/FSL5CS/news/news1223.asp

From the few details you mention, it sound like it's time to start
calling the law firms given in the second link and shopping for
representation.

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