On Tuesday U.S. District Judge Victor Marrero rejected a bid by former MF Global Chief Executive Jon Corzine to dismiss investor litigation seeking to hold him and others responsible for the futures brokerage’s bankruptcy. Judge Marrero says the defendants’ contentions suggest supernatural forces were responsible for the multi-billion dollar crash. The investor lawsuit covers investors in MF Global common stock, convertible bonds and senior notes between May 20, 2010 and November 21, 2011. Former stockholders and bondholders accused MF Global of inflating its ability to manage risk, obscuring the risks of its big bet on European sovereign debt and improperly accounting for deferred tax assets. Marrero did not rule on the merits – but said the claims carry additional measures of reliability and plausibility from government regulators’ and Congressional committees’ investigations in the MF Global’s bankruptcy.
Source: NAFB News Service