MF Global Case Moves Forward without Dismissal
While a federal judge called the lawsuit seeking to hold MF Global CEO Jon Corzine and other executives accountable for the brokerage's collapse wasteful and rancorous - the lawsuit will move forward.
According to District Judge Victor Marrero - it's reasonable to infer someone did something wrong to set such an extraordinary chain of events in motion that caused extensive harm to many people and interests. This was the latest ruling by the judge - who last month refused to dismiss the lawsuit by the U.S. Commodity Futures Trading Commission. In November - Judge Marrero allowed MF Global investors to move forward with a lawsuit against Corzine, other executives and several banks related to their alleged role in the collapse of the brokerage.
This time - the judge did dismiss parts of the lawsuit. He dismissed claims that Corzine and former Assistant Treasurer Edith O'Brien engaged in direct violation of the Commodity Exchange Act - but allowed the plaintiffs to pursue claims against the executives for aiding and abetting violations of the law. Judge Marrero also dismissed some state law claims asserted in the lawsuit against the defendants - but declined to dismiss claims against the executives of breach of fiduciary duty, negligence and tortuous interference with contract and business advantage. The lawyer representing former MF Global customers in this case was pleased the customer-specific claims were upheld.
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