MF Global Holdings Ltd. - Securities Class Action

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Stanford Law School

MF Global Holdings Ltd. Summary: According to the press release issued on November 03, 2011, the complaint asserts that MF Global (formerly traded on NYSE under MF and/or MFGLQ.PK) through its most senior officers and directors made certain materially false and misleading statements regarding the Company's internal financial controls and liquidity levels. The positive statements about MF Global were allegedly knowingly false and misleading when made because: (1) the Company was suffering from serious liquidity pressures based on its exposure to the European debt crisis; (2) the Company's internal controls were highly deficient and were unable to clearly segregate clients' funds; and (3) MF Global's senior management failed to disclose that the Company's true risk profile would inevitably lead to a credit rating downgrade.

In late October, MF Global faced multiple downgrades of its credit ratings by Moody's Investor Service ("Moody's"), Standard & Poor's ("S&P"), and Fitch Ratings ("Fitch"). The first downgrade occurred on October 24, 2011 when Moody's cut the Company's rating to near junk status. On this news, the Company's stock price plunged $1.69 per share – from $3.55 per share on October 24, 2011 to close at $1.86 per share on October 25, 2011 – a decline of more than 47% on unusually high volume. Moody's and Fitch then slashed the Company's credit rating to junk status on October 27, 2011. This downgrade followed the threat of similar action by S&P. The market reacted swiftly to this news as the Company's stock price fell an additional $0.27 per share – from $1.70 per share on October 26, 2011, to close at an all-time low of $1.43 per share on October 27, 2011 – representing a decline of more than 15%. Thereafter, attempts to spin off the Company's futures trading business failed and, on October 31, 2011, MF Global filed for Chapter 11 bankruptcy protection in United States Bankruptcy Court in New York. The New York Stock Exchange suspended trading in the Company's stock and moved to de-list its shares on November 1, 2011. All told, investors lost approximately $585.0 million in market capitalization in a single week.

On January 13, 2012, the court issued an Order of Consolidation. The Court ordered that all filings in connection with the consolidated action be docketed against the remaining lower numbered case, 11 Civ. 7866; and also ordered that the Clerk of Court close the referenced higher numbered case, 11 Civ. 9114, as a separate action and remove it from the Court's docket.

On January 20, 2012, the court issued an order appointing the Virginia Retirement System and Her Majesty the Queen in Right Of Alberta as lead plaintiff and approving their selection of co-lead counsel.

On March 27, 2012, the court issued an Order of Consolidation. The Court ordered that all filings in connection with the consolidated action be docketed against the remaining lower numbered case, 11 Civ. 7866; and also ordered that the Clerk of Court close the referenced higher numbered cases, 12 Civ. 1722, 12 Civ. 1782 and 12 Civ. 1982, as separate actions and remove them from the Court's docket.

INDUSTRY CLASSIFICATION:
SIC Code: 6200
Sector: Financial
Industry: Investment Services

COMPANY/ISSUER NAME:	MF Global Holdings Ltd.
COMPANY/ISSUER TICKER:	MF
COMPANY WEBSITE:	http://www.mfglobal.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Joseph Deangelis, et al. v. Jon S. Corzine, et al.

COURT: S.D. New York	DOCKET NUMBER: 11-CV-07866
JUDGE NAME: Hon.Victor Marrero
DATE FILED: 11/03/2011	SOURCE:
CLASS PERIOD START: 05/20/2011	CLASS PERIOD END: 10/28/2011
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Block & Leviton LLP 155 Federal Street, Suite 1303, Boston, MA, 02110 (voice) (617) 398-5600, (fax) (617) 507-6020, Brower Piven (New York) 488 Madison Avenue. Eighth Floor, New York, NY, 10022 (voice) 212.501.9000, (fax) 212.501.0300, info@browerpiven.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 2

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint for Violation of Federal Securities Laws
Type: Complaint		Date on the document: 11/03/2011
Notice Of Voluntary Dismissal Pursuant To Fed. R. Civ. P. 41(A)(1)(A)(I)
Type: Other		Date on the document: 12/19/2011
Order And Notice Of Voluntary Dismissal Pursuant To Fed. R. Civ. P. 411(A)(1)(A
Type: Other		Date on the document: 12/22/2011
Order Consolidation
Type: Order		Date on the document: 01/13/2012
Order Appointing The Virginia Retirement System And Her Majesty The Queen In Right Of Alberta As Lead Plaintiff And Approving Their Selection Of Co-Lead Counsel
Type: Order		Date on the document: 01/20/2012
U.S. District Court Civil Docket
Type: Docket		Date on the document: 01/26/2012
Order Consolidation
Type: Other		Date on the document: 02/23/2012
Order Consolidation
Type: Order of Consolidation		Date on the document: 03/27/2012

OTHER DOCUMENTS
Order Consolidation
Case Name and/or Number: Juan P. Arvelo v. Jon S. Corzine
Type: Order		Date on the document: 01/27/2012
Notice of Voluntary Dismissal Pursuant to Fed. R. CIV. P.41(a)(1)(A)(i)
Case Name and/or Number: Joseph Deangelis, et al. v. Jon S. Corzine, et al.
Type: Notice		Date on the document: 02/01/2012

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