Tags: Corzine | MF Global | lawsuit | settlement

Corzine, Ex-MF Global Officials to Settle Investor Lawsuit

Tuesday, 07 July 2015 01:18 PM

Jon S. Corzine, the former chief executive of MF Global Holdings Ltd., and other former officials of the failed brokerage agreed to pay $64.5 million to settle an investor lawsuit in the latest unwinding of litigation against the failed brokerage.

The settlement follows an earlier resolution with PricewaterhouseCoopers LLP, which agreed in April to pay $65 million to rid itself of claims tied to botched audits of the failed brokerage. Underwriters including Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Goldman Sachs & Co. agreed to pay investors $74 million. That settlement was approved by a judge on June 26.

The plaintiffs also reached a separate settlement last month with Commerz Markets LLC, a unit of Frankfurt-based Commerzbank AG, which agreed to pay $933,000. The settlement requires a judge’s approval. Corzine and the other defendants denied any wrongdoing in agreeing to settle the lawsuit.

The accord with Corzine, disclosed in a court filing Tuesday in Manhattan, ends suits by investors including the Virginia Retirement System and Her Majesty The Queen In Right of Alberta.

MF Global filed for bankruptcy on Oct. 31, 2011, after a $6.3 billion bet on bonds of some of Europe’s most indebted nations. Investors alleged in lawsuits against Corzine and other former executives that more than $1.6 billion that should have been segregated was transferred to other parts of the company during a liquidity crisis.

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Jon S. Corzine, the former chief executive of MF Global, and other former officials of the failed brokerage agreed to pay $64.5 million to settle an investor lawsuit in the latest unwinding of litigation against the failed brokerage.
Corzine, MF Global, lawsuit, settlement
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2015-18-07
Tuesday, 07 July 2015 01:18 PM
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