MF Global Suit Against Flowers Tossed

Apr 17 2014 | 9:51am ET

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.


In Depth

Q&A: Rotation Capital's Rothfleisch On SPAC 2.0

Aug 11 2017 | 7:43pm ET

Corporate actions have long been a staple of event-driven investors, but activity...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Star Mountain Capital: Private Lending in the Lower Middle-Market

Aug 14 2017 | 4:45pm ET

Private credit has become one of the most popular alternative asset classes in recent...

 

From the current issue of