2nd Circ. Revives Class Action Over MF Global IPO

Law360, New York (September 14, 2010, 8:02 PM EDT) -- A federal appeals court has breathed new life into part of a putative securities class action brought by a group of pension funds against MF Global Ltd. alleging the derivatives brokerage misrepresented risk factors for investors.

A three-judge panel in the U.S. Court of Appeals for the Second Circuit on Tuesday sided with the pension funds on a claim that MF Global exaggerated its risk management processes, but partially rejected a second claim that the company concealed defects in its client accounts systems.

The panel, led...
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