BFTA Obtains Final Approval of $75 Million Partial Settlement in MF GlobalJune 29, 2015
On June 29, 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, secured final approval of two proposed partial settlements in the MF Global litigation, totaling approximately $75 million. The Court-approved settlements consist of: (i) a $74 million partial settlement that fully resolves the class’s claims against certain underwriter defendants; and (ii) a $932,838 partial settlement that fully resolves the class’s claims against Commerz Markets LLC.
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.
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. Fact discovery ends on July 1, 2015.