Corzine, ex-MF Global officials agree to settle investor lawsuit

JULY 8, 2015    LAST UPDATED: WEDNESDAY, JULY 8, 2015, 1:21 AM
FROM STAFF AND NEWS SERVICE REPORTS |
WIRE SERVICE

Ex-New Jersey Gov. Jon Corzine and other former officials of failed brokerage MF Global Holdings Ltd., which Corzine headed, have agreed to pay $64.5 million to settle an investor lawsuit.

The proposed settlement, which requires a judge’s approval, apparently marks the first time Corzine has agreed to pay victims of MF Global’s spectacular collapse in 2011, which triggered a slew of lawsuits and an FBI investigation.

In agreeing to the settlement, Corzine and the other defendants denied any wrongdoing, according to a filing Tuesday in Manhattan federal court. Corzine’s lead attorney, Andrew J Levander, declined to comment on the settlement, which will be paid by MF Global’s insurance company.

MF Global filed for bankruptcy on Oct. 31, 2011, after a $6.3 billion bet on bonds of some of Europe’s most indebted nations, orchestrated by Corzine. Clients alleged in lawsuits against Corzine and other former executives that more than $1.6 billion that should have been segregated was transferred to other parts of the company during a liquidity crisis.

The settlement follows an earlier accord reached with PricewaterhouseCoopers LLP, which agreed in April to pay $65 million to rid itself of claims tied to botched audits. Underwriters, including Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Goldman Sachs & Co., separately agreed in May to pay investors $74 million. That settlement was approved by a judge on June 26.

The plaintiffs also reached a separate settlement last month with Commerz Markets LLC, a unit of Frankfurt-based Commerzbank AG, which agreed to pay $933,000.

Corzine, a former Wall Street broker who rose to become co-chairman of Goldman Sachs, had entered politics by winning a U.S. Senate seat as a Democrat, representing New Jersey for five years before winning election as governor in 2005.

Corzine took MF Global’s helm in March 2010, shortly after leaving the governor’s office following his defeat by Chris Christie in his bid for reelection.

 

https://www.northjersey.com/news/business/mf-global-suits-settled-1.1369796