Rubin v. MF Global, Ltd., et al. (In re MF Global Securities Litigation)
A $90 million settlement was obtained in this case involving allegations of material misstatements and omissions in a Registration Statement and Prospectus issued in connection with MF Global’s IPO.
On November 18, 2011, the Honorable Victor Marrero of the United States District Court for the Southern District of New York granted final approval to a settlement in the amount of $90 million in cash in the class action Rubin v. MF Global, Ltd., et al., No. 08-Civ-02233-VM (S.D.N.Y.). Barrack Rodos & Bacine and Cohen Milstein Sellers & Toll PLLC are court-appointed lead counsel for lead plaintiffs the Iowa Public Employees' Retirement System, the Policemen's Annuity & Benefit Fund of Chicago, the Central States, Southeast and Southwest Areas Pension Fund and the class. Labaton Sucharow is additional counsel for additional lead plaintiff State-Boston Retirement System.
The class alleged that MF Global, Ltd. ("MF Global"), certain individual defendants and several underwriter defendants made material misstatements and omissions in a Registration Statement and Prospectus issued in connection with MF Global's initial public offering ("IPO") in violation of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933, which had the effect of artificially inflating the price of MF Global's common stock. On October 31, 2011, MF Global Holdings, Ltd. filed a voluntary Chapter 11 petition for relief under the United States Bankruptcy Code. As a result of the bankruptcy filing, all pending litigation against MF Global was automatically stayed against it, including the securities class action. On November 11, 2011, MF Global filed a motion in the United States Bankruptcy Court for the Southern District of New York asking the bankruptcy court to lift the automatic stay to allow the United States District Court to go forward with the final settlement hearing of the securities class action on November 18, 2011, as previously scheduled, and to ratify MF Global's participation in that settlement. (A copy of that motion is available on this website.) The bankruptcy heard MF Global's motion on November 16, 2011 and granted the motion on November 17, 2011. The final settlement hearing was held as scheduled in the district court on November 18th. Please continue to monitor this website on a regular basis to find out if there have been any material developments.
If you purchased or otherwise acquired MF Global common stock pursuant or traceable to the Registration Statement and Prospectus issued in connection with MF Global's IPO on or about July 19, 2007, and were allegedly damaged thereby, you may be eligible to recover if you submit a Proof of Claim and Release form ("Proof of Claim") with supporting documents by December 27, 2011. The deadline for objecting to the settlement or for seeking exclusion from the class was October 28, 2011, or 21 days before the settlement hearing, whichever is later.