Case Page

 

Case Status:    SETTLED
On or around 11/21/2011 (Date of order of final judgment)

Filing Date: March 06, 2008

A class action lawsuit was filed on behalf of purchasers of the common stock of MF Global, Ltd., (“MF” or the “Company”) (NYSE:MF), in its Initial Public Offering on July 19, 2007 and on the open market through February, 28, 2008 (the “Class Period”). The complaint asserts claims against defendants for violations of Sections 11, 12(2) and 15 of the Securities Act of 1933. The complaint alleges that the Registration Statement and Prospectus issued in connection with the IPO were materially false and misleading.

On June 23, 2008, the Judge Victor Marrero granted the motion to appoint Iowa Public Employees' Retirement System; Policemen's Annuity & Benefit Fund of Chicago; Central States, Southeast, Southwest Areas Pension Fund; and State-Boston Retirement System as lead plaintiffs. Further, according to the order, the law firms of Barrack, Rodos & Bacine and Cohen, Milstein, Hausfeld & Toll, P.L.L.C. are approved to serve as co-lead counsel. On September 12, 2008, the lead plaintiffs filed a Corrected Consolidated Class Action Complaint.

On January 12, 2009, the defendants filed motions to dismiss the Consolidated Class Action Complaint. On July 16, 2009, the Court entered the Decision and Order signed by Judge Victor Marrero granting the defendants’ motion to dismiss. Plaintiffs may submit a response a request for leave to amend their complaint within twenty days of the date of this Order.

On September 18, 2009, the lead plaintiffs filed a Notice of Appeal in the Second Circuit Court of Appeals.

According to an article dated September 16, 2010, plaintiffs may get a second chance to go after MF Global Ltd. and other defendants for the drop in the firm's stock price following revelations one of its traders lost $141.5 million in a single morning on wheat futures. In its latest discussion of the "bespeaks-caution" rule, the 2nd U.S. Circuit Court of Appeals vacated a lower court judge's dismissal of a claim that MF Global's prospectus for its 2007 public offering failed to disclose weaknesses in its risk management system. Judge Victor Marrero of the U.S. District Court for the Southern District of New York had dismissed that claim under the bespeaks-caution rule -- a judicial doctrine that holds that "soft" information in a prospectus, such as forecasts, estimates and other forward-looking statements, cannot be substantially misleading to investors. 2nd Circuit Judges Dennis Jacobs, Barrington D. Parker Jr. and Peter W. Hall vacated that dismissal as an overbroad application of the rule in Iowa Public Employees' Retirement System v. MF Global Ltd., 09-3919-cv. The panel remanded the case for the judge to apply the correct standard to the plaintiffs' remaining allegations.

On November 5, 2010, the plaintiffs file a First Amended Consolidated Class Action Complaint.

According to a press release dated January 20, 2011, MF Global Holdings Ltd. (NYSE: MF), a broker-dealer providing trading and hedging solutions, announced it was pleased to reach a preliminary agreement among principals to settle class action litigation brought on behalf of purchasers of MF Global stock between July 2007 and February 2008. MF Global will contribute $2.5 million to the overall settlement of $90 million. MF Global joins this settlement without admitting liability and in the interest of avoiding unnecessary litigation expense. The preliminary settlement and complete documentation will be subject to Court review and final approval. As a result of this settlement, the only remaining financial issue involving the unauthorized trading incident in February 2008 will be the resolution of MF Global’s claim for insurance coverage.

On August 11, 2011, an unopposed motion for preliminary approval of settlement was filed. The settlement was preliminarily approved on August 15, 2011. The Settlement Hearing was set for November 18, 2011. On November 18, 2011, the Court approved the final settlement, the plan of distribution of settlement funds, and awarded attorneys' fees and expenses. The action is now dismissed with prejudice and closed.

COMPANY INFORMATION:

Sector: Financial
Industry: Investment Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: MF
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. New York
DOCKET #: 08-CV-02233
JUDGE: Hon. Victor Marrero
DATE FILED: 03/06/2008
CLASS PERIOD START: 07/19/2007
CLASS PERIOD END: 02/28/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
  2. Weiss & Lurie (New York, NY)
    The French Building, 551 Fifth Ave., Suite 1600, Weiss & Lurie (New York, NY), NY 10126
    212.682.3025 212.682.3010 · info@wyca.com
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 08-CV-02233
JUDGE: Hon. Victor Marrero
DATE FILED: 11/05/2010
CLASS PERIOD START: 07/19/2007
CLASS PERIOD END: 02/28/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Barrack, Rodos & Bacine (Main office, Philadelphia)
    Two Commerce Square, 2001 Market Street, Suite 3300 , Barrack, Rodos & Bacine (Main office, Philadelphia), PA 19103
    215.963.0600 215.963.0838 · info@barrack.com
  2. Barrack, Rodos & Bacine (New York)
    1350 Broadway, Suite 1001, Barrack, Rodos & Bacine (New York), NY 10018
    212.688.0782 212.688.0782 ·
  3. Cohen Milstein Sellers & Toll PLLC (Chicago)
    190 South LaSalle Street, Suite 1705, Cohen Milstein Sellers & Toll PLLC (Chicago), IL 60603
    312.357.0370 312.357.0369 ·
  4. Cohen Milstein Sellers & Toll PLLC (Washington DC)
    1100 New York Avenue, N.W., Suite 500, West Tower, Cohen Milstein Sellers & Toll PLLC (Washington DC), DC 20005
    202.408.4600 202.408.4600 ·
No Document Title Filing Date
No Document Title Filing Date
No Document Title Filing Date