BERKELEY, Calif., Nov. 5, 2011 /PRNewswire/ -- Hagens Berman Sobol Shapiro LLP today announced that it is continuing its investigation of MF Global (OTC: MFGLQ) following Jon Corzine's resignation as chairman and chief executive of the company.
A class-action lawsuit has been filed on behalf of investors, and the deadline to apply for lead plaintiff status is Jan. 2, 2012.
Hagens Berman encourages investors who purchased MF Common stock between May 20, 2011, and Oct. 28, 2011, or who purchased 6.25 percent bonds as part of an Aug. 2011 $325 million offering to contact the firm.
Hagens Berman Partner Reed R. Kathrein is leading the firm's investigation and can be reached at (510) 725-3000 or via email at [email protected]. Investors can also learn more about this investigation at www.hbsslaw.com/MFGlobal.
The filed lawsuit alleges that MF Global made false and misleading statements to investors, including failing to disclose the company's reported internal control problems in segregating clients' funds. Hagens Berman is investigating whether the company used clients' money to offset losses the company had incurred in failed investments.
MF Global filed for bankruptcy on Oct. 31, 2011, and on the same day, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued a joint statement, noting that a deal to sell off part of the company to another firm had not been agreed to. The statement also pointed out that MF Global had reported "possible deficiencies" in customer accounts.
The following day, The Wall Street Journal reported that, according to a federal official, MF Global told regulators that money was missing from customers' accounts. The same day, the company was suspended from trading on the London Metal Exchange. It has also been suspended as a clearing member of CME Group, Inc., one of the largest futures markets.
Jon Corzine, the company's chairman and chief executive, announced his resignation four days later on Nov. 4, 2011.
"Corzine's departure from the company is not an encouraging sign," said Mr. Kathrein. "As we continue our investigation, we hope to uncover whether the company mixed investors' and company money, and if Corzine himself played a part in that decision."
Persons with knowledge that may help the investigation are encouraged to contact the firm. The SEC recently finalized new rules as part of its implementation of the whistleblower provisions in the Dodd-Frank Wall Street Reform Bill. The new rules protect whistleblowers from employer retaliation and allow the SEC to reward those who provide information leading to a successful enforcement with up to 30 percent of the recovery.
About Hagens Berman
Seattle-based Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in 10 cities. Founded in 1993, the firm's mission is to represent plaintiffs in class actions and multi-party, large-scale litigation that has the potential to protect the rights of investors, consumers, workers and the environment. The National Law Journal has rated Hagens Berman as one of the top plaintiffs' firms in the country four out of the last five years. More information about the firm is available at www.hbsslaw.com, and the firm's securities law blog is at www.meaningfuldisclosure.com.
Media Contact: Mark Firmani, Firmani + Associates Inc., 206.443.9357 or [email protected]
SOURCE Hagens Berman LLP