BFTA Secures $74 Million Partial Settlement in MF GlobalDecember 11, 2014
On December 11, 2014, 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 $74 million partial settlement 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.
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, former auditor, and the underwriters responsible for the final $325 million bond offering. Plaintiffs’ motion for class certification is currently pending.