PHILADELPHIA, Nov. 5, 2012 --
/PRNewswire/ -- Law firms and Class Plaintiffs -- former MF Global
Inc. Customers -- representing the former commodity customers of MF
Global Inc. and others today filed a consolidated amended class
action lawsuit in the United States District Court for the Southern
District of New York against former MF Global CEO Jon Corzine,
other former MF Global directors and officers,
PricewaterhouseCoopers (PwC), and CME Group.
The complaint, filed by the Court-appointed interim co-lead
counsel for the class and the Court-appointed executive committee
consisting of counsel from Berger & Montague, Entwistle &
Cappucci, Susman Godfrey, Nisen & Elliot, Grant &
Eisenhofer, and Fleischman Law Firm, includes allegations of:
violations of the Commodity Exchange Act, breach of fiduciary duty,
negligence, tortious interference of contract and business
advantage, and conversion, among other causes of action.
"The defendants in this lawsuit acted wrongfully by not
fulfilling their common law and statutory duties to protect
property and segregate funds owned by the former customers of MF
Global Inc.," said interim co-lead counsel Merrill Davidoff.
"Through this lawsuit, we aim to recover hundreds of millions of
dollars in damages from those who are responsible for this atrocity
to return to the victims of their actions, MF Global's former
customers. Our suit also seeks recoveries on behalf of the general
creditors of MF Global Inc., who were also injured as a result of
the misconduct of the defendants."
The consolidated amended class action complaint alleges causes
of action against Corzine, former CFO Henri Steenkamp, former COO
Bradley Abelow, former General Counsel Laurie Ferber, former
Assistant Treasurer Edith O'Brien, former CFO Christine Serwinski,
former Global Treasurer David Dunne, former Global Treasurer Vinay
Mahajan, MF Global's former independent auditor PwC, and MF
Global's former regulator CME Group.
"We are pleased that our lawsuit is moving forward with the
filing of this consolidated amended complaint," said interim
co-lead counsel Andrew Entwistle. "Over a year ago, the management
of MF Global employed recklessly permissive procedures and
directed, caused, authorized or allowed transfers of over $900
million in customer property for use by the firm, while PwC and CME
Group enabled this behavior. It is time that these parties pay for
their improper behavior."
In addition to detailing the unlawful actions of Corzine and
other former directors and officers of MF Global, which led to an
unprecedented invasion of customer property, the complaint details
how PwC failed to adequately audit the internal controls over
customer funds as required by law and CME Group failed to
adequately regulate and supervise MF Global Inc. while knowing it
was not complying with obligations regarding customer funds
Plaintiffs' counsel has entered into a cooperation agreement
with James W. Giddens, the Trustee for the liquidation of MF Global
Inc., approved by the Bankruptcy Court and the District Court for
the Southern District of New York. Under the cooperation agreement,
the Trustee assigned to plaintiffs' counsel and Class Plaintiffs --
on behalf of customers and creditors of MF Global Inc. -- certain
claims against MF Global's former directors and officers and PwC,
which plaintiffs' counsel are pursuing along with class action
claims. Plaintiffs' counsel are continuing to cooperate with the
Trustee, and any recoveries will be distributed through the
Trustee's claims process.
Berger & Montague, P.C.
Merrill Davidoff, Esquire 215-875-3084
Michael Dell'Angelo 215-875-3080
Entwistle & Cappucci, LLP
Andrew Entwistle, Esquire 212-894-7200
Joshua Porter, Esquire 212-894-7200
SOURCE Berger & Montague, P.C.