Former Refco CFO Dropped From Securities Action

Law360, New York (October 20, 2010, 7:18 PM EDT) -- Investors alleging Refco Inc. artificially inflated its stock through false statements, nondisclosures and fraudulent conduct prior to a 2005 initial public offering have agreed to drop their claims against the failed brokerage's ex-chief financial officer, who already pled guilty to related criminal charges.

The investors agreed Tuesday to voluntarily drop their claims against Robert Trosten, according to a motion filed in the U.S. District Court for the Southern District of New York.

Trosten pled guilty to five charges in the massive scheme and has been cooperating...
To view the full article, register now.