BERKELEY, Calif., Nov. 1, 2011 /PRNewswire/ -- Hagens Berman Sobol Shapiro LLP today announced that it is investigating brokerage firm MF Global Holdings (NYSE: MF) following reports that the company admitted to regulators that it diverted customers' funds.
Institutional investors, hedge funds, mutual funds and others who purchased MF common stock or 6.25 percent bonds as part of a $325 million offering in Aug., 2011 are encouraged to contact the firm. Partner Reed R. Kathrein is leading the firm's investigation and can be reached at (510) 725-3000 or via email at MFGlobal@hbsslaw.com. Investors can also learn more about this investigation at www.hbsslaw.com/MFGlobal.
MF Global filed for bankruptcy on Oct. 31, 2011. On the same day, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued a joint statement, noting that a deal to sell off part of the company to another firm had not been agreed to. The statement also noted that MF Global had reported "possible deficiencies" in customer accounts.
On Nov. 1, 2011, The Wall Street Journal reported that, according to a federal official, MF Global told regulators that money was missing from customers' accounts.
The same day, the company was suspended from trading on the London Metal Exchange. It has also been suspended as a clearing member of CME Group, Inc., one of the largest futures markets.
Hagens Berman is investigating whether the company misappropriated customers' funds, using their money to offset losses the company incurred in failed investments.
"A central tenet of Wall Street regulation is that company money and customers' money must be kept separate," said Mr. Kathrein. "If MF Global allowed customer money to be used to prop up the company, the company should be held accountable."
Persons with knowledge that may help the investigation are encouraged to contact the firm. The SEC recently finalized new rules as part of its implementation of the whistleblower provisions in the Dodd-Frank Wall Street Reform Bill. The new rules protect whistleblowers from employer retaliation and allow the SEC to reward those who provide information leading to a successful enforcement with up to 30 percent of the recovery.
About Hagens Berman
Seattle-based Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in 10 cities. Founded in 1993, the firm's mission is to represent plaintiffs in class actions and multi-party, large-scale litigation that has the potential to protect the rights of investors, consumers, workers and the environment. The National Law Journal has rated Hagens Berman as one of the top plaintiffs' firms in the country four out of the last five years. More information about the firm is available at www.hbsslaw.com, and the firm's securities law blog is at www.meaningfuldisclosure.com.
Media Contact: Mark Firmani, Firmani + Associates Inc., 206.443.9357 or mark@firmani.com
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