Two law firms that represented customers caught up in the
collapse of MF Global Holdings Ltd. (MFGLQ) have linked up to
prepare a class-action lawsuit on behalf of clients of Peregrine
Financial Group Inc.
Berger & Montague PC and Collett Legal are discussing such a
suit with former customers of Peregrine, which collapsed into
bankruptcy this week after its chief executive attempted suicide
and regulators alleged hundreds of millions of dollars in client
money had gone missing.
Lawyers for the two firms are still evaluating where the case
should be filed and which Peregrine officials it should be filed
against, though Peregrine CEO Russell Wasendorf Sr. is likely to be
named, Mr. Collett said.
Berger & Montague in May was named co-lead counsel for civil
lawsuits brought against MF Global, following the January filing of
a class-action lawsuit against former MF Global CEO Jon Corzine and
other officials of that firm. The action seeks to reclaim missing
customer money, with about $1.6 billion in client assets yet to be
returned more than nine months following MF Global's demise.
The effort has the backing of the Commodity Customer Coalition,
an ad hoc group of asset-management firms and commodity traders
formed following the downfall of MF Global in October 2011 to
assert the views of clients in bankruptcy court and keep former
customers up to date on legal proceedings.
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