MF Global's Corzine and Others Settle Lawsuit for $64.5 million

The bankrupt brokerage, MF Global Holdings Ltd (MF Global), is in the news again today after another round of settlements stemming from its collapse in 2011.

Prior to its financial woes, the brokerage had been providing Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term-traded derivatives as well as over-the-counter products such as contracts for difference (CFDs), foreign exchange and spread betting.

After a bad bet on European sovereign debt left the company seriously in the red, MF Global made improper transfers totalling more than $891 million from client funds to cover the loses.

The preliminary $64.5 million all-cash Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term, which was disclosed today in a court filing, stems from a litigation filed by investors against former executives and directors of MF Global. The settlement must be approved by a federal judge in Manhattan, according to Reuters.

The most high-profile of the nine accused is Jon Corzine, former governor of New Jersey, who was chief executive of the brokerage. Corzine sought to turn MF Global from a brokerage into a mid-tier investment bank. As such, the company took on more principal risk, including the aforementioned European sovereign portfolio, which ultimately left MF Global insolvent.

The settlement is the most recent in a string of lawsuits related to MF Global’s downfall. In April, PricewaterhouseCoopers (PwC) settled a lawsuit with MF Global investors, who accused the auditor of fraudulent deceit. Investors claimed that PwC, which agreed to pay $65 million in cash to settle the lawsuit, failed to disclose MF Global’s fatal issues despite being aware of them. Some of MF Global’s underwriters also settled to pay a total of $74.9 million.

The latest settlement therefore boosts the investors’ recovery to $204.4 million, a substantial sum given that MF Global went bankrupt. A number of claims remain, including more against PwC and the banks that helped underwrite the bad bonds.