BFTA Secures $64.5 Million Partial Settlement in MF Global; Ongoing Settlements Total $204.4 MillionJuly 7, 2015
On July 7, 2015, Co-Lead Counsel BFTA and Bernstein Litowitz Berger & Grossmann LLP, on behalf of Co-Lead Plaintiffs Her Majesty the Queen in Right of Alberta and the Virginia Retirement System, filed a motion for preliminary approval of a proposed $64.5 million partial settlement resolving the class’s claims against former officers and directors of MF Global, including former CEO Jon S. Corzine, former CFO Henri J. Steenkamp, former CFO and Global Head of Retail J. Randy MacDonald, and former directors David P. Bolger, Eileen S. Fusco, David Gelber, Martin J.G. Glynn, Edward L. Goldberg, David I. Schamis, and Robert S. Sloan.
This settlement, together with last December’s $74.93 million settlement with certain underwriter defendants, and the April 2015 $65 million settlement with MF Global’s outside auditor PricewaterhouseCoopers LLP, brings the total amount of partial settlements to $204.4 million.
Lead Plaintiffs conducted a detailed investigation of the claims in the action and overcame motions to dismiss brought by the individual defendants named above. Lead Plaintiffs also received and reviewed millions of documents in discovery from Defendants and third parties, and conducted over 30 depositions of former employees of MF Global and other key witnesses, including four days of testimony from MF Global’s former CEO Jon Corzine.
In 2011, MF Global filed for Chapter 11 bankruptcy, shortly after investors learned that MF Global’s financial stability was materially at risk due to its exposure in European sovereign debt, and that over $1.2 billion in customer funds were missing. In November 2013, Judge Marrero of the United States District Court for the Southern District of New York sustained Plaintiffs’ claims in their entirety.
The litigation continues against the underwriters responsible for the final $325 million bond offering. Plaintiffs’ motion for class certification is currently pending.