BOSTON, Nov. 1, 2011 /PRNewswire/ -- Block & Leviton LLP, (www.blockesq.com) a Boston-based law firm representing investors seeking to recover money lost due to investment fraud, is investigating possible securities fraud claims involving MF Global Holdings Ltd. (NYSE: MF) ("MF Global" or the "Company").
The investigation commenced when the Company filed for bankruptcy on Monday October 31, 2011 after a deal with Interactive Brokers to sell portions of the Company collapsed. The alleged deal unraveled when Interactive Brokers uncovered that as much as $700 million of customer money was missing from MF Global accounts. The Company later disclosed to regulators that customer money was indeed missing, according to a joint statement released by the Securities and Exchange Commission and the Commodity Futures Trading Commission. Federal regulators continue their investigation. Based upon these allegations, it appears that the Company failed to disclose material information about the nature of its business and the fact that it had co-mingled client funds with its own, in violation of federal regulations and causing investors who purchased MF Global stock to suffer losses.
MF Global found itself looking for suitors following 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 and then again on October 26, 2011. The Company's credit rating was then reduced to junk status on October 27, 2011. On October 25, 2011 following the first downgrade, MF Global's stock plummeted 47% to close at $1.86. On October 28, 2011, following the downgrade to junk status, the stock took another plunge of 16% from the prior day's close at $1.20 per share. From October 25, 2011 through October 28, 2011, the Company experienced an unprecedented high trading volume. The New York Stock Exchange suspended trading in the Company's stock and moved to de-list its shares on November 1, 2011.
If you purchased or acquired MF Global's securities between May 28, 2010 (the date of the Company's 2010 Annual Report) and October 28, 2011 and would like to learn more about your legal options, you may contact Block & Leviton for more information.
Block & Leviton is a Boston-based law firm representing investors for violations of securities laws. The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 40 years.
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SOURCE Block & Leviton LLP
