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MF Global Trustee to Join Existing Suits Against Executives

Posted: August 16, 2012
By: Aaron Lucchetti and Mike Spector
Source: The Wall Street Journal
Practice Areas: Commercial Litigation

The bankruptcy trustee trying to recover money for U.S. customers of MF Global Holdings Ltd. agreed to cooperate with lawyers suing the securities firm's former executives for damages related to its collapse last year.

The move Wednesday by James Giddens could accelerate a morass of lawsuits that seek money from former MF Global executives, directors and other people accused in the suits of failing to protect customer money. As a result of the agreement, Mr. Giddens will give lawyers in those cases access to documents and other evidence gathered in his probe.

The trustee won't be a plaintiff in the lawsuits, but he will "assign" his legal claims to the plaintiffs and "participate" fully in the cases. Any money recovered will be distributed through Mr. Giddens, minus lawyer fees.

...

"This will ultimately enhance the recovery by customers," said Andrew Entwistle, managing partner of law firm Entwistle & Cappucci LLP, and co-lead counsel for MF Global customer plaintiffs with Merrill Davidoff of Berger & Montague [P.C.].

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