BFTA Appointed Co-Lead Counsel in MF Global Securities LitigationAugust 13, 2014
On August 13, 2014 the Honorable Victor Marrero appointed Bleichmar Fonti Tountas & Auld LLP to serve as Co-Lead Counsel in the pending securities litigation against MF Global, replacing former Co-Lead Counsel Labaton Sucharow LLP. BFTA represents the Court-appointed Lead Plaintiff Alberta Investment Management Company and joins Bernstein Litowitz Berger & Grossmann LLP as Co-Lead Counsel.
BFTA founding partner Dominic J. Auld remarked: "We're happy that we're getting the opportunity to continue to prosecute this case moving forward. We've always believed the case is strong on the merits and look forward to litigating it on the merits."
This securities fraud class action arises from one of the most notorious corporate frauds in recent history against MF Global’s directors, officers and underwriters in connection with the company’s dramatic bankruptcy. Plaintiffs allege that MF Global, then under the leadership of CEO Jon Corzine, misrepresented 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 issued an Opinion denying Defendants’ motion to dismiss in their entirety, likening “the events surrounding the catastrophic collapse of MF Global Holdings Limited . . . in the closing days of October 2011 to a massive train wreck in which thousands of people – passengers, crew, bystanders and others – were seriously injured upon sudden impact with a force the victims could not see coming.” Judge Marrero further explained that this “harmful outcome” was the result of “wrongful conduct,” constituting a “long, knowing, and consistent course of action of the part of the various Defendants.”