Private-equity firm J.C. Flowers & Co. has been cleared of allegations that it defrauded customers of defunct futures brokerage MF Global Holdings.
U.S. District Judge Victor Marrero yesterday allowed Sapere CTA Fund’s lawsuit against former MF Global CEO Jon Corzine and two other former officials to stand. But he threw out the fund’s claim that Flowers had “control” over Corzine’s conduct and was therefore liable for the 2011 collapse.
Marrero also tossed claims against MF Global board members.
“We are pleased by the court’s decision dismissing the baseless claims against J.C. Flowers,” the firm said.
Corzine, former MF Global chief operating officer Bradley Abelow and former CFO Henri Steenkamp were not so lucky: For the fifth time, a judge has refused to dismiss litigation against them stemming from MF Global’s failure.