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Plaintiffs' Counsel for Former MF Global Inc. Customers File Consolidated Amended Class Action Complaint

Posted: November 5, 2012
Practice Areas: Commercial Litigation, Commodities and Options

Plaintiffs' Counsel for Former MF Global Inc. Customers File Consolidated Amended Class Action Complaint Against MF Global Directors and Officers, PwC and CME Group

Published Monday, Nov. 05, 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 segregation.

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.

Media contact:

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.