Business & Finance
Mon, November 21, 2011 
SAN DIEGO--([ BUSINESS WIRE ])--Robbins Geller Rudman & Dowd LLP (aRobbins Gellera) ([ http://www.rgrdlaw.com/cases/mfglobalholdings/ ]) today 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 Ltd. (aMF Globala) (NYSE:MF) between February 3, 2011 and October 31, 2011, inclusive (the aClass Perioda), including those who purchased MF Globalas 1.875% Convertible Senior Notes due 2016, 3.375% Convertible Senior Notes due 2018, and 6.25% Senior Notes due 2016 (collectively, the aMF Global Notesa), pursuant or traceable to the Companyas 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 (collectively, the aOfferingsa).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from November 3, 2011. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffsa counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at [ djr@rgrdlaw.com ]. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at [ http://www.rgrdlaw.com/cases/mfglobalholdings/ ]. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges certain officers and directors of MF Global and the underwriters of the Offerings with violations of the Securities Exchange Act of 1934 and the Securities Act of 1933. MF Global was a holding company that acted as a broker in markets for commodities and listed derivatives.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Companyas business and financial results. Specifically, MF Globalas exposure to European sovereign debt was not fully described for investors. As a result of defendantsa false statements, MF Globalas 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 Globalas exposure to European sovereign debt was concealed, defendants were able to raise $900 million in the Offerings.
On October 25, 2011, MF Global disclosed information about its $6.3 billion exposure to European sovereign debt and also issued a press release announcing disappointing second quarter fiscal 2012 results, including a net loss of $191.6 million, or ($1.16) diluted earnings for share. On this news, MF Global stock declined $1.69 per share to close at $1.86 per share and the MF Global Notes declined to below 50% of par. In the following days, MF Globalas credit ratings were also reduced to ajunka status. Subsequently, on October 28, 2011, the NYSE halted trading in MF Global stock at $1.20 per share. Then on October 31, 2011, MF Global announced that the New York Federal Reserve had suspended the Companyas designation as a primary dealer and that the Company had filed for Chapter 11 bankruptcy. The MF Global Notes have defaulted and MF Global has admitted to federal investigators that money is missing from its customer accounts.
According to the complaint, the true facts, which were known to defendants but concealed from the investing public during the Class Period and were omitted from the Registration Statement, included that: (a) MF Global had been misstating its capital ratios by misrepresenting the Companyas exposure to European debt instruments; (b) MF Globalas leverage was so extreme that the true valuation of the European debt instruments would cause the Company to become insolvent; and (c) MF Global was not properly segregating client assets, leading to comingled funds.
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 aClassa). The plaintiffs are represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller, a 180-lawyer firm with offices in New York, San Diego, San Francisco, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Robbins Geller Web site ([ http://www.rgrdlaw.com ]) has more information about the firm.
