Refco Investors Settle With Bank For $140M

Law360, New York (June 15, 2007, 12:00 AM EDT) -- Investors out for blood after Refco Inc.'s spectacular collapse have asked a court to sign off on a $140 million settlement with the bank that allegedly helped sink the commodities broker.

If approved, the settlement will resolve all claims by the shareholders against BAWAG P.S.K. Group, which loaned former Refco CEO Phillip Bennett $430 million and was said to have abetted the accounting fraud scheme that led to the company's bankruptcy in 2005.

Counsel for lead plaintiffs RH Capital Associates LLC and Pacific Investment Management Company...
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