Case Page

 

Case Status:    ONGOING    
On or around 01/19/2016 (Date of stipulation and/or agreement of settlement)

Filing Date: November 03, 2011

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.

On May 4, 2012, the Court issued an Order of Consolidation. All filings in connection with the consolidated action be docketed against the remaining lower number case, 11 Civ. 7866. The Clerk of Court is directed to close the referenced higher numbered cases, 12 Civ. 2471 and 12 Civ. 3231, as separate actions and remove them from the Court's database.

On May 15, 2012, the Court issued an Order of Consolidation. It is ordered that all filings in connection with the consolidated action be docketed against the remaining lower number case, 11 Civ. 7866. It is further ordered that the Clerk of Court is directed to close the referenced higher numbered case, 12 Civ. 3588 as a separate action and remove it from the Court's database.

On May 18, 2012, the Court issued an Order of Consolidation. It is further ordered that all filings in connection with the consolidated action be docketed against the remaining lower number case, 11 Civ. 7866; and it is further ordered that the Clerk of Court is directed to close the referenced higher numbered case, 12 Civ. 3884 as a separate action and remove it from the Court's database.

On July 9, 2012, the Court issued an Order of Consolidation. It is further ordered that all filings in connection with the consolidated action be docketed against the remaining lower number case, 11 Civ. 7866; and it is further ordered that the Clerk of Court is directed to close the referenced higher numbered case, 12 Civ. 5181 as a separate action and remove it from the Court's database.

On August 20, 2012, the Plaintiffs filed their consolidated amended complaint. On November 5, 2012, the Plaintiffs filed a complaint amending the above.

On November 14, 2012, the Plaintiffs filed a Notice documenting the voluntary dismissal of an individual defendant.

On December 13, 2012, the Court issued an Order consolidating cases. It was further ordered that all filings in connection with the consolidated action be docketed against the remaining lower number case, 11 Civ. 7866; and it was further ordered that the Clerk of Court is directed to close the referenced higher numbered case, 12 Civ. 3589, as a separate action.

On March 19, 2013, the parties entered into a Settlement Agreement. This proposed Settlement was preliminarily approved by the Court on March 28, 2013.

On May 21, 2013, the United States Court of Appeals for the Second Circuit issued a Mandate dismissing the Appellant's motion for "open discovery".

On July 3, 2013, the Court entered a Final Judgment approving the Settlement.

On the 11th of February 2014, the Court for the Southern District of New York denied in part, and granted in part, the motions to dismiss of the defendant former officers of the now defunct Futures Commission Merchant and its external auditor. Although the Court allowed most claims against the defendant officers finding that they were aware of the unlawful transfers and continued to approve them despite catastrophic losses. The Court dismissed claims against the auditor finding that it did not owe a duty to the plaintiff customers.

On November 25, 2014, the Lead Plaintiffs entered into a settlement agreement with a select group of underwriter defendants.

On March 17, 2015, the Lead Plaintiffs entered a settlement agreement with certain institutional defendant.

On July 7, 2015, the Lead Plaintiffs entered into a settlement agreement with the individual defendants.

COMPANY INFORMATION:

Sector: Financial
Industry: Investment Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: MFGLQ
Company Market: NASDAQ
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 #: 11-CV-07866
JUDGE: Hon.Victor Marrero
DATE FILED: 11/03/2011
CLASS PERIOD START: 05/20/2011
CLASS PERIOD END: 10/28/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Block & Leviton LLP
    155 Federal Street, Suite 1303, Block & Leviton LLP, MA 02110
    (617) 398-5600 (617) 507-6020 ·
  2. Brower Piven (New York)
    488 Madison Avenue. Eighth Floor, Brower Piven (New York), NY 10022
    212.501.9000 212.501.0300 · info@browerpiven.com
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 11-CV-07866
JUDGE: Hon.Victor Marrero
DATE FILED: 08/20/2012
CLASS PERIOD START: 05/20/2011
CLASS PERIOD END: 11/21/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Litowitz Berger & Grossmann LLP (Former New York)
    1285 Avenue of the Americas, 33rd Floor, Bernstein Litowitz Berger & Grossmann LLP (Former New York), NY 10019
    212.554.1400 212.554.1444 · blbg@blbglaw.com
  2. Girard Gibbs LLP (San Francisco)
    601 California Street, Suite 1400, Girard Gibbs LLP (San Francisco), CA 94108
    415.981.4800 415.981.4846 · mail@girardgibbs.com
  3. Labaton Sucharow LLP
    140 Broadway, Labaton Sucharow LLP, NY 10005
    212.907.0700 212.818.0477 · info@labaton.com
  4. Motley Rice LLC (Mount Pleasant)
    28 Bridgeside Boulevard, Motley Rice LLC (Mount Pleasant), SC 29464
    843.216.9000 843.216.9450 · inquiry@motleyrice.com
  5. Robbins Geller Rudman & Dowd LLP (San Diego)
    655 West Broadway, Suite 1900, Robbins Geller Rudman & Dowd LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
  6. Zamansky & Associates LLC
    50 Broadway - 32nd Floor, Zamansky & Associates LLC , NY 10004
    212.742.1414 212.742.1177 ·
No Document Title Filing Date
No Document Title Filing Date