New York, NY – In what could herald many such investor lawsuits, MF Global Holdings Ltd Chief Executive Jon Corzine and three other company executives were sued by a shareholder over the futures brokerage’s collapse, leading to an October 31 bankruptcy filing.
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The complaint filed Thursday in Manhattan federal court by shareholder Joseph DeAngelis accused the executives of having “continuously touted” MF Global’s financial controls and liquidity, despite knowing their statements were false and misleading at the time they were made.
It said that as problems became known, MF Global’s share price plunged, wiping out $585 million of market value in a single week.
The complaint seeks class-action status on behalf of purchasers of MF Global common stock from May 20 to October 28.
Other defendants are Chief Financial Officer Henri Steenkamp, Chief Operating Officer Bradley Abelow and Chief Risk Officer Michael Stockman, according to the complaint. MF Global was not named as a defendant.
U.S. regulators are conducting a broad review of MF Global business practices as they try to track down more than $600 million of missing customer money. MF Global filed for Chapter 11 protection after its bets on European sovereign debt scared away clients, counterparties and investors.
The case is DeAngelis v. Corzine et al, U.S. District Court, Southern District of New York, No. 11-07866.
there done
They’re all a bunch of crooks in suits and ties.