Class Action Suit Filed Against Certain Officers and Directors of MF Global
Robbins Geller Rudman & Dowd announced that a class action has been commenced on behalf of institutional investors in the United States District Court for the Southern District of New York on behalf of purchasers of the publicly traded securities of MF Global Holdings between February 3, 2011 and October 31, 2011, inclusive, including those who purchased MF Global's 1.875% Convertible Senior Notes due 2016, 3.375% Convertible Senior Notes due 2018, and 6.25% Senior Notes due 2016, pursuant or traceable to the Company's false and misleading Registration Statement and Prospectuses issued in connection with its February 11, 2011 offering of the 1.875% Convertible Senior Notes, August 2, 2011 offering of the 3.375% Convertible Senior Notes, and August 8, 2011 offering of the 6.25% Senior Notes.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and financial results. Specifically, MF Global's exposure to European sovereign debt was not fully described for investors. As a result of defendants' false statements, MF Global's stock traded at artificially inflated prices during the Class Period, reaching a high of $8.84 per share on April 1, 2011. While the extent of MF Global's exposure to European sovereign debt was concealed, defendants were able to raise $900 million in the Offerings.
Plaintiffs seek to recover damages on behalf of all purchasers of MF Global publicly traded securities during the Class Period, including those persons or entities who acquired MF Global Notes pursuant or traceable to the Registration Statement and Prospectuses issued in connection with the Offerings. The plaintiffs are represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
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