MF Global Holdings, Ltd. (fka MFGLQ)

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MF Global settlements rise to $204M, co-lead plaintiff AIMCo reports

The corporation that invests on behalf of Alberta government pension funds is claiming victory in recovering a total of US $204 million in three settlements as co-lead in a New York legal action against now-defunct broker-dealer MF Global.

AIMCo, the Alberta Investment Management Co., reported Thursday it and Virginia Retirement System have won the settlements to be shared with class action members from their securities litigation started three years ago. It’s not known how much will go to the Alberta fund.

The two leads in the action have said they are owed a combined $19 million, with AIMCo’s claim related to its equity stake in MF Global. AIMCo spokesman Denes Nemeth said he can’t provide more detail on AIMCo’s interest because the matter is still in the court system.

Kevin Uebelein, AIMCo chief executive, said the company felt obligated to take the lead in the action to protect its investors, which include 27 pension, endowment and government funds with a total of $85 billion of assets under management.

“Companies that do not adhere to those same high standards should know that we will work tirelessly, and exhaust all available avenues, to ensure our clients best interests are preserved,” he said in a news release.

MF Global filed for bankruptcy in 2011, shortly after investors learned that MF Global’s financial stability was at risk and that over $1.2 billion in customer funds were missing.

The class action claims that it misrepresented to the market its risk controls and liquidity position, failed to disclose its overexposure to European sovereign debt, and failed to properly account for its deferred tax assets.

AIMCo said the recoveries include a US$64-million settlement resolving claims against former CEO Jon Corzine and other senior executives. Underwriter defendants led by Goldman Sachs settled for $75 million and outside auditor PricewaterhouseCoopers LLP settled for $65 million.

Further litigation continues against the remaining underwriters, led by Jefferies LLC, who were responsible for the final $325-million bond offering, it said.

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http://calgaryherald.com/business/local-business/aimco-says-mf-global-class-action-settlements-now-at-us-204m