John Corzine, the former chairman of the Board of Directors and chief executive officer of MF Global Holdings – the parent of the defunct futures commission merchant, MF Global Inc., and other officers and directors settled a lawsuit by former investors in the firm from May 2010 to November 2011. The investors claimed that MF Global Holdings had made false filings with the Securities and Exchange Commission related to the company’s controls and liquidity prior to the firm’s bankruptcy filing on October 31, 2011. The plaintiffs also claimed that MF Global’s and the defendants’ public statements “materially misstated and failed to disclose the significant liquidity risk posed by the Company’s proprietary investments in Euro sovereign debt through repurchase-to-maturity transactions … — a strategy designed to prop up the Company’s profitability.” (Click here to access the Consolidated Second Amended Securities Class Action Complaint (October 2014).) Subject to the US federal court in NY’s final approval (preliminary approval was granted), the defendants will cause their insurance carriers to pay US $64.5 million to resolve this matter. The plaintiffs previously settled claims against PricewaterhouseCoopers LLP for US $65 million and against underwriters (including Citigroup Global Markets, Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. and Merrill Lynch, Pierce, Fenner & Smith) for US $74 million. The lead plaintiffs in this action were The Virginia Retirement System and Province of Alberta, Canada. The defendants included, among others, J. Randy MacDonald, former chief financial officer of MF Global from April 2008 through March 2011, and Henri Steenkamp, the firm’s CFO from April through November 2011, in addition to Mr. Corzine. The Commodity Futures Trading Commission 2013 lawsuit against Mr. Corzine and Edith O’Brien, MF Global Inc.’s former assistant treasurer, related to the FCM’s implosion remains pending. (Click here for details in the article “CFTC Files Long Awaited Enforcement Action Related to MF Global Collapse” in the June 27, 2013 edition of Between Bridges.)