Grant Thornton reached a settlement in a class action alleging that it assisted Refco Inc. in artificially inflating Refco's stock through false statements, nondisclosures, and fraudulent conduct prior to Refco's initial public offering in 2005. Refco filed for bankruptcy just two months after the IPO when it lost its NYSE listing after announcing that it was owed over $400 million from Refco Group Holdings Inc., an entity controlled by former directors. Refco had allegedly been covering up trading losses by transferring securities to appear as debts owed by Refco Group Holdings. Under the settlement agreement, which was filed on October 18, 2010 with the U.S. District Court for the Southern District of New York, Grant Thornton will pay $25 million to resolve the claims following final approval of the settlement. Last month, Refco's former COO and executive vice president, William M. Sexton, Refco's former vice president of global marketing, Joseph J. Murphy, and Refco's former general counsel and executive vice president, Dennis Klejna, also agreed to settle claims filed against them for $300,000 and forfeit $8.3 million to the U.S. government. On October 19, 2010 plaintiffs decided to voluntarily drop their claims against former Refco CFO Robert Trosten. If approved, these settlements will effectively bring an end to the Refco securities class action.