Tuesday, 30 August 2016
Last updated 5 hours ago
Jan 21 2011 | 12:30pm ET
The Man Group and its former futures brokerage have settled a shareholder lawsuit stemming from the latter's spin-off in 2007.
Investors claimed that MF Global made false and misleading statements in its initial public offering registration and prospectus. The firm, now led by former New Jersey Gov. Jon Corzine, went public in November 2007. The lawsuit followed in 2008, after a rogue trader at the firm caused $141 million in losses on unauthorized wheat bets.
MF Global said it would pay only $2.5 million of the $90 million settlement. Man is kicking in $32.5 million, and MF Global said it hoped its insurance would cover the rest.
The futures brokerage did not admit or deny any wrongdoing.