Tags: Jon Corzine | MF Global | class action | lawsuit

Corzine Must Face MF Global Customer Class Action, Court Rules

Monday, 20 July 2015 05:04 PM

MF Global Holdings Ltd. commodities customers may pursue their lawsuit seeking hundreds of millions of dollars from former chief executive Jon Corzine and other officials over the brokerage's bankruptcy as a class action, a federal judge said on Monday.

U.S. District Judge Victor Marrero in Manhattan said it was desirable to let the roughly 25,200 customers sue as a group rather than require a "plethora" of individual lawsuits, a process he said would be "wholly inefficient and wasteful."

The lawsuit seeks at least $820 million, comprising at least $350 million of prejudgment interest, and $470 million to repay advances from MF Global brokerage trustee James Giddens, which he could not recover in the bankruptcy proceedings, according to Merrill Davidoff, a lawyer for the customers.

MF Global filed for Chapter 11 protection on Oct. 31, 2011, in a collapse that left $1.6 billion missing from customer accounts. The customers recouped that sum in exchange for assigning some of their claims to Giddens.

"We were expecting a favorable decision," Davidoff, a partner at Berger & Montague, said in an interview. "They all had their money raided and stolen and dipped into illegally, and still have important claims that need to be pursued."

Corzine is also a former New Jersey governor and senator, and co-chairman at Goldman Sachs.

His lawyer Jonathan Streeter, a partner at the Dechert law firm, did not immediately respond to requests for comment. MF Global is now defunct.

Former MF Global investors have separately reached $204.4 million of settlements with the company's former banks, auditor and officials.

These include a $64.5 million accord with Corzine and other executives and directors, which would be covered by insurance.

Marrero designated the law firms Berger & Montague and Entwistle & Cappucci as co-lead counsel of the commodities customer class action.

The U.S. Commodity Futures Trading Commission is separately suing Corzine over MF Global's collapse. MF Global settled related CFTC claims for $100 million.

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MF Global Holdings Ltd. commodities customers may pursue their lawsuit seeking hundreds of millions of dollars from former chief executive Jon Corzine and other officials over the brokerage's bankruptcy as a class action, a federal judge said on Monday.
Jon Corzine, MF Global, class action, lawsuit
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2015-04-20
Monday, 20 July 2015 05:04 PM
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