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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