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Case Status:    SETTLED
On or around 10/21/2019 (Other)

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 April 15, Plaintiffs filed a Notice appealing the decision of the Court to dismiss certain claims.

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 defendants.

On July 7, 2015, the Lead Plaintiffs entered into a settlement agreement with the individual Defendants. On July 22, the Court of Appeals affirmed the District Court's decision to dismiss some of the claims. On November 25, the Court granted final approval of the Settlement with the individual Defendants.

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