MF Global Settles Lawsuit Related to 2008 Wheat Loss

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MF Global Holdings Ltd., the futures broker headed by former New Jersey Governor Jon Corzine, reached a preliminary agreement to settle a shareholder lawsuit filed over a $141.5 million wheat loss in 2008 by one of the firm’s employees.

The company will contribute $2.5 million to a $90 million settlement with shareholders who purchased the stock between July 2007 and February 2008, New York-based MF Global said in a U.S. regulatory filing today. The brokerage didn’t admit liability and the deal must receive court approval, the company said. It is still seeking insurance coverage against the loss, MF Global said.