MF Global suits combined in New York over customer objections

Reuters News
Posted: Apr 24, 2012 2:53 PM
MF Global suits combined in New York over customer objections

NEW YORK (Reuters) - A slew of lawsuits by investors and customers of MF Global Holdings Ltd who sued over the futures brokerage's collapse have been consolidated into one case in Manhattan federal court, a court document showed.

In an order filed late on Monday, a group of judges granted a request by former MF Chief Executive Jon Corzine and three other former company executives named as defendants in the lawsuits to consolidate the cases under one roof.

The United States Judicial Panel on Multidistrict Litigation said in its transfer order that the cases should be combined despite objections by commodities futures customers, one group of plaintiffs, who did not want their cases combined with lawsuits by securities investors.

"All actions arise from the common factual backdrop of the demise of MF Global Holdings, Ltd and related entities and the reported shortfall in MF Global, Inc commodities futures customer accounts," the order said.

U.S. District Judge Victor Marrero will oversee the consolidated case.

The transfer order also noted that Manhattan federal court was the right venue because MF Global was a New York company and that the company was underdoing bankruptcy proceedings in a neighboring courthouse.

The transfer order combined two securities cases composed of about 20 related class action lawsuits and one case by commodities futures customers in Chicago federal court.

The consolidated case is In Re: MF Global Holdings Ltd., U.S. District Court for the Southern District of New York, No. 12-MD-2338.

(Reporting By Basil Katz; Editing by Bernard Orr)