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
SOURCE Hagens Berman Sobol Shapiro LLP
