MF Global faces class-action suits after bankruptcy
Lawyer News
Two class-action lawsuits have been filed against bankrupt brokerage MF Global as customers struggle to recover funds from the first major US casualty of the European debt crisis.
On Saturday, Seattle-based Hagens Berman said it was "investigating whether the company used clients' money to offset losses the company had incurred in failed investments."
It filed a lawsuit in the name of investors who bought MF Global shares between May 20 and October 28 or who bought bonds issued in August.
The complaint charged that MF Global "made false and misleading statements to investors, including failing to disclose the company's reported internal control problems in segregating clients' funds."
Attorney Reed Kathrein said Friday's resignation of the company's chief executive Jon Corzine, whose activities in the last weeks of the failing firm have attracted regulator scrutiny, was "not an encouraging sign."
"As we continue our investigation, we hope to uncover whether the company mixed investors' and company money, and if Corzine himself played a part in that decision," he added in a statement.
Boston law firm Block & Leviton said Friday it had also filed a class-action lawsuit in New York federal court on behalf of MF Global clients over the same period.
It charged MF Global made "certain materially false and misleading statements regarding the Company's internal financial controls and liquidity levels" through its "most senior" officers and directors.
Investors lost some $585 million in market capitalization in the week that preceded MF Global's bankruptcy filings alone, according to Block & Leviton.
Related listings
-
Greenberg Traurig Receives 2 International M&A Advisor Awards
Lawyer News 10/17/2011The international law firm Greenberg Traurig, LLP won two awards in the Major Transaction category for Corporate/Strategic Acquisition of the Year and for Financing Deal of the Year at The M&A Advisor 3rd Annual International M&A Awards. The ...
-
Corps halts levee break prep as states argue
Lawyer News 05/02/2011A federal judge hearing arguments over the U.S. Army Corps of Engineers' plan to intentionally break a Mississippi River levee left the bench Thursday without making a ruling but indicated he was reluctant to get in the agency's way.U.S. District Jud...
-
Bachmann uses Holocaust to illustrate tax point
Lawyer News 05/02/2011Minnesota Rep. Michele Bachmann on Saturday described the loss of "economic liberty" that young Americans face today as a "flash point of history" in which the younger generation will ask what their elders did to stop it.In a speech to New Hampshire ...
New Rochelle, New York Personal Injury Lawyers
If you or a loved one has been injured in an accident, contact Kommer, Bave & Ollman, LLP, in New Rochelle, New York, immediately. We can answer all your questions and work with you to determine if you have the grounds for a personal injury lawsuit. The attorneys at our firm are determined to resolve even the most difficult of cases. We will work closely with you to determine the best course of action to get your claim or case resolved in the most efficient way possible. We will fight for your right to compensation! No one should have to suffer a financial burden from the result of another person’s carelessness. The attorneys at Kommer, Bave & Ollman, LLP will aggressively fight to ensure that justice is served on your behalf.