Case Updates
BFA Secures Recovery From Remaining Underwriters in MF Global; Settlements Total Over $234 Million
On March 11, 2016, Co-Lead Counsel BFA 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 settlement of approximately $30 million resolving class claims against Jeffries LLC, BMO Capital Markets Corp. Natixis, Securities Americas LLC, Lebenthall & Co., LLC, and U.S. Bancorp Investments Inc.
This settlement, in conjunction with last April's $65 million partial settlement with PriceWaterhouseCoopers LLP, the $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, the $64.5 million partial settlement that fully resolves the class's claims against former officers and directors of MF Global, including former CEO Jon S. Corzine, as well as the approximately $1 million partial settlement agreement with Commerz Markets LLC, brings the settlement total in the MF Global action to over $234 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. The case is before Judge Marrero of the United States District Court for the Southern District of New York.
This settlement, in conjunction with last April's $65 million partial settlement with PriceWaterhouseCoopers LLP, the $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, the $64.5 million partial settlement that fully resolves the class's claims against former officers and directors of MF Global, including former CEO Jon S. Corzine, as well as the approximately $1 million partial settlement agreement with Commerz Markets LLC, brings the settlement total in the MF Global action to over $234 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. The case is before Judge Marrero of the United States District Court for the Southern District of New York.