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...
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