MF Global Must Face Suit Over $1.6B In Missing Funds

Law360, New York (November 12, 2013, 7:03 PM EST) -- A New York federal judge on Tuesday refused to toss a proposed class action alleging officers of the bankrupt broker-dealer MF Global lied to investors about the company's financial stability —including a $1.6 billion shortfall in customer funds — writing in a strongly worded order that the firm couldn’t possibly be blameless.

District Judge Victor Marrero dismissed the defendants' motions to dismiss, sharply criticizing their insistence that they had done nothing wrong to cause the firm’s “catastrophic” collapse in 2011, saying that many of the plaintiffs'...
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