NEW YORK, March 17 /PRNewswire-USNewswire/ -- Zwerling, Schachter & Zwerling, LLP ("Zwerling Schachter") filed a class action lawsuit in the United States District Court for the Southern District of New York. The class action is brought on behalf of all persons and entities who purchased or acquired the common stock of MF Global, Ltd. ("MF" or the "Company") pursuant or traceable to the Company's July 19, 2007 initial public offering of approximately 97.4 million shares at $30.00 per share (the "IPO") and through February 28, 2008 (the "Class Period") and who suffered damages (the "Class"). As described below, the deadline to file a motion seeking to be appointed lead plaintiff is May 9, 2008.
The complaint alleges that certain representations made by the defendants in connection with the IPO contained statements that were materially false and misleading, or omitted to state other facts necessary to make the statements made not misleading, because: (1) the Company's risk management infrastructure including its policies, procedures and systems were deficient; (2) the Company misrepresented that clients open positions and margin levels were monitored on a real time basis with its sophisticated technical system and oversight; (3) the Company's risk management controls were suspended or eliminated to speed up certain trades; (4) the Company eliminated credit and risk analysis, buying power limits and controls which allowed an MF representative to place orders disregarding margin requirements; and (5) that, as a result of the foregoing, the Registration Statement and Prospectus were false and misleading at all relevant times.
On February 28, 2008, before the markets opened, MF disclosed via press release that the Company was taking a $141.5 million bad debt provision after one of its day-trading brokers, who was trading in wheat futures "substantially exceeded his authorized trading limit." The MF broker speculated in wheat futures in his MF personal account, placing orders for about 15,000 to 20,000 futures contracts. On this news, MF's shares closed at $21.19 - down $8.09 a share, representing a nearly 30% collapse.
If you are a member of the Class, you may apply to serve as lead plaintiff. The lead plaintiff is responsible for overseeing the prosecution of the action and ensuring that the interests of the class are protected. You may apply to be appointed lead plaintiff through Zwerling Schachter.
If you wish to discuss this securities class action or have any questions concerning your rights and interests with respect to this matter, please contact Zwerling Schachter (Shaye J. Fuchs, Esq. or Jayne Nykolyn) at 1-800-721-3900 or by e-mail at
Zwerling Schachter concentrates in prosecuting class actions nationwide on behalf of investors. The firm currently plays a leading role in numerous major securities and complex commercial litigations pending in federal and state courts and has offices in New York City, Garden City, New York, Boca Raton, Florida and Seattle, Washington. The firm has been recognized by courts throughout the country as highly experienced and skilled in complex litigation, particularly with respect to federal securities class action litigation.
Visit our website at: http://www.zsz.com/.
