BFTA and Co-Lead Counsel Seek Class Certification in MF Global Securities LitigationSeptember 15, 2014
On September 15, 2014, Court-appointed Lead Plaintiffs Her Majesty the Queen in Right of Alberta and the Virginia Retirement System, represented by Co-Lead Counsel BFTA and Bernstein Litowitz Berger & Grossmann LLP, respectively, filed a motion seeking: (1) certification of a class of investors who were defrauded in connection with MF Global’s dramatic collapse; (2) Plaintiffs’ appointment as Class Representatives; and (3) appointment of Co-Lead Counsel as Class Counsel.
The case advances several claims against MF Global’s directors, officers and underwriters in connection with the Company’s bankruptcy. Plaintiffs claim that MF Global, then under the leadership of CEO Jon Corzine, misrepresented to the market its risk controls and liquidity position, failed to disclose its overexposure to European sovereign debt, and failed to properly account for its deferred tax assets. In November 2013, Judge Marrero of the United States District Court for the Southern District of New York sustained Plaintiffs’ claims in their entirety. Judge Marrero’s Order included a strong critique of Defendants, who had insisted that they did nothing wrong in connection with the Company’s stunning failure, and was a resounding victory for the putative Class.
Plaintiffs now seek to certify a Class of two types of investors: (1) those who have Section 10(b) and 20(a) claims under the Exchange Act, based on their acquisition of common stock or certain Notes issued by MF Global; and (2) those who have Sections 11, 12(a)(2), and 15 claims under the Securities Act, based on their acquisition of certain Notes issued by MF Global or common stock from a secondary offering in June 2010.