Case Page

 

Case Status:    DISMISSED    
On or around 04/08/2009 (Court's order of dismissal)

Filing Date: July 31, 2008

The complaint charges MF Global and certain of its officers and directors with violations of the Securities Exchange Act of 1934. MF Global is a broker of exchange-listed futures and options.

The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's capital and financial results and concealed the material deterioration in the Company's business and the insufficiency of its capital, which would necessitate additional offerings of securities
and dilution of the ownership interest of MF Global investors. As a result of defendants' false statements, MF Global stock traded at artificially inflated prices during the Class Period, reaching a high of $14.98 per share in May 2008.

On June 17, 2008, MF Global issued a press release announcing its intention to sell approximately $300 million in convertible stock and bonds to repay a bridge loan due in December and updating its current fiscal first quarter 2009 earnings estimates. The expected revenues were well below the levels MF Global's management had led the market to expect just weeks earlier. As a result of this news, MF Global's
stock dropped to close at $7.83 per share on June 18, 2008, a decline of 43% from June 17, 2008.

On June 19, 2008, The Wall Street Journal published an article regarding the Company's planned $300 million offering and its other recent problems, including a probe by the Commodity Futures Trading Commission alleging one of the Company's brokers colluded with a trader at the Bank of Montreal to set natural-gas prices and
speculation about its liquidity position and the desertion of clients. On this news, MF Global's stock dropped to $6.86 per share on June 20, 2008, a decline of 55% from the Class Period high of $14.98 per share in May 2008.

According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) MF Global's business was materially weaker than represented and the Company would not be able to achieve the 15%-20% revenue growth projected for fiscal 2009; and (b) MF Global's capital would not be sufficient absent additional infusions which would dilute the ownership of current shareholders.

On December 30, 2008, Judge Jed S. Rakoff granted the defendants’ motion to dismiss the complaint. On April 8, 2009, Judge Rakoff reaffirms its prior order and the case was dismissed with prejudice.

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-06858
JUDGE: Hon. Jed S. Rakoff
DATE FILED: 07/31/2008
CLASS PERIOD START: 03/17/2008
CLASS PERIOD END: 06/20/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    200 Broadhollow, Suite 406, Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 · info@csgrr.com/
  2. Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    655 West Broadway, Suite 1900, Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 · info@csgrr.com/
  3. WeissLaw LLP
    551 Fifth Avenue, Suite 1600, WeissLaw LLP, NY 10176
    212.682.3025 212.682-3010 · info@wllawny.com
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