Plaintiffs' Counsel for Former MF Global Inc. Customers File Consolidated
Amended Class Action Complaint Against MF Global Directors and Officers, PwC
and CME Group
PHILADELPHIA, Nov. 5, 2012
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
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
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
Berger & Montague, P.C.
Merrill Davidoff, Esquire
Entwistle & Cappucci, LLP
Andrew Entwistle, Esquire
Joshua Porter, Esquire
SOURCE Berger & Montague, P.C.
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