Nov 3 (Reuters) - In what could herald many such investor
lawsuits, MF Global Holdings Ltd Chief Executive Jon Corzine
and three other company executives were sued by a shareholder
over the futures brokerage's collapse, leading to an Oct. 31
The complaint filed Thursday in Manhattan federal court by
shareholder Joseph DeAngelis accused the executives of having
"continuously touted" MF Global's financial controls and
liquidity, despite knowing their statements were false and
misleading at the time they were made.
It said that as problems became known, MF Global's share
price plunged, wiping out $585 million of market value in a
The complaint seeks class-action status on behalf of
purchasers of MF Global common stock from May 20 to Oct. 28.
Other defendants are Chief Financial Officer Henri
Steenkamp, Chief Operating Officer Bradley Abelow and Chief
Risk Officer Michael Stockman, according to the complaint. MF
Global was not named as a defendant.
U.S. regulators are conducting a broad review of MF Global
business practices as they try to track down more than $600
million of missing customer money. MF Global filed for Chapter
11 protection after its bets on European sovereign debt scared
away clients, counterparties and investors.
The case is DeAngelis v. Corzine et al, U.S. District
Court, Southern District of New York, No. 11-07866.
(Reporting by Jonathan Stempel)
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