LAWSUITS NEWS & LEGAL INFORMATION
MF Global MF / MFGLQ.PK Securities Stock Fraud
|Ticker Symbol:||MF / MFGLQ.PK|
|Class Period:||May-20-11 to Oct-28-11|
|Lead Plaintiff Deadline:||Jan-2-12|
|Court:||Southern District of New York|
The complaint asserts that MF Global (formerly traded on NYSE under MF and/or MFGLQ.PK) through its most senior officers and directors made certain materially false and misleading statements regarding the Company's internal financial controls and liquidity levels. The positive statements about MF Global were allegedly knowingly false and misleading when made because: (1) the Company was suffering from serious liquidity pressures based on its exposure to the European debt crisis; (2) the Company's internal controls were highly deficient and were unable to clearly segregate clients' funds; and (3) MF Global's senior management failed to disclose that the Company's true risk profile would inevitably lead to a credit rating downgrade.
In late October, MF Global faced multiple downgrades of its credit ratings by Moody's Investor Service ("Moody's"), Standard & Poor's ("S&P"), and Fitch Ratings ("Fitch"). The first downgrade occurred on October 24, 2011 when Moody's cut the Company's rating to near junk status. On this news, the Company's stock price plunged $1.69 per share - from $3.55 per share on October 24, 2011 to close at $1.86 per share on October 25, 2011 - a decline of more than 47% on unusually high volume. Moody's and Fitch then slashed the Company's credit rating to junk status on October 27, 2011. This downgrade followed the threat of similar action by S&P.
The market reacted swiftly to this news as the Company's stock price fell an additional $0.27 per share - from $1.70 per share on October 26, 2011, to close at an all-time low of $1.43 per share on October 27, 2011 - representing a decline of more than 15%. Thereafter, attempts to spin off the Company's futures trading business failed and, on October 31, 2011, MF Global filed for Chapter 11 bankruptcy protection in United States Bankruptcy Court in New York. The New York Stock Exchange suspended trading in the Company's stock and moved to de-list its shares on November 1, 2011. All told, investors lost approximately $585.0 million in market capitalization in a single week.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
MF Global MF / MFGLQ.PK Securities Fraud Legal HelpIf you have suffered from financial losses, you may qualify for damages or remedies that may be awarded in a possible MF Global securities class action lawsuit. Please click the link below to submit your complaint for a free evaluation.
Published on Nov-4-11
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