BFTA Secures $65 Million Partial Settlement in MF Global; Ongoing Settlements Total $140 MillionApril 17, 2015
On April 17, 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 $65 million partial settlement resolving class claims against PricewaterhouseCoopers LLP.
This settlement, in conjunction with last December’s $74 million partial settlement agreement resolving class claims against Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman, Sachs & Co., J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, RBS Securities Inc. and Sandler O’Neill & Partners, L.P, as well as the $1 million partial settlement agreement with Commerz Markets LLC, brings the ongoing settlement total in the MF Global action to $140 million.
These securities fraud claims arose from MF Global’s sale of over $600 million of bonds in three separate securities offerings. MF Global defaulted on these securities following its filing 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 MF Global’s officers, directors, and the underwriters responsible for the final $325 million bond offering. Plaintiffs’ motion for class certification is currently pending.