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MF Global may have misrepresented its internal risk control methods to prevent unauthorized transactions in its trading operations.
Investigation Source (Case #08-cv-02233)
- Nationwide
Investigation Scope
Category Information
Investigation Topics
- Investments
- False And Misleading Statements
- Registration Statement
Product or Service
- Common Stock
Injury Type
- Monetary Loss
Investigation Details
This is a securities class action lawsuit against MF Global and certain officers and directors and certain underwriters on behalf of purchasers of the common stock of MF Global, Ltd. in its Initial Public Offering on July 19, 2007 and on the open market through February, 28, 2008 (the "Class Period").
The securities class action lawsuit alleges that MF Global misrepresented the nature of its internal risk controls to manage among other risks, the risks that traders could trade in their own accounts or trade without proper margin requirements. These representations proved to be false when one MF Global trader, working from his home on a lap top computer, lost over $140,000,000 in a wheat futures trade on his own account.
The securities class action lawsuit alleges that MF Global misrepresented the nature of its internal risk controls to manage among other risks, the risks that traders could trade in their own accounts or trade without proper margin requirements. These representations proved to be false when one MF Global trader, working from his home on a lap top computer, lost over $140,000,000 in a wheat futures trade on his own account.
Defendant Details
| Name (Stock Symbol) | Brief Description |
|---|---|
| MF Global, Ltd. (MF) | MF Global Ltd. is a broker of exchange-listed futures and options. |