BOSTON, Nov. 1, 2011 /PRNewswire/ -- Block & Leviton
LLP, (www.blockesq.com) a Boston-based law firm representing investors
seeking to recover money lost due to investment fraud, is
investigating possible securities fraud claims involving MF Global
Holdings Ltd. (NYSE: MF) ("MF Global" or the "Company").
The investigation commenced when the Company filed for
bankruptcy on Monday October 31, 2011
after a deal with Interactive Brokers to sell portions of the
Company collapsed. The alleged deal unraveled when
Interactive Brokers uncovered that as much as $700 million of customer money was missing from
MF Global accounts. The Company later disclosed to regulators that
customer money was indeed missing, according to a joint statement
released by the Securities and Exchange Commission and the
Commodity Futures Trading Commission. Federal regulators
continue their investigation. Based upon these allegations,
it appears that the Company failed to disclose material information
about the nature of its business and the fact that it had
co-mingled client funds with its own, in violation of federal
regulations and causing investors who purchased MF Global stock to
suffer losses.
MF Global found itself looking for suitors following multiple
downgrades of its credit ratings by Moody's Investor Service
("Moody's"), Standard & Poor's ("S&P"), and Fitch Ratings
("Fitch"). The first downgrade occurred on October 24, 2011 and then again on October 26, 2011. The Company's credit
rating was then reduced to junk status on October 27, 2011. On October 25, 2011 following the first downgrade,
MF Global's stock plummeted 47% to close at $1.86. On October
28, 2011, following the downgrade to junk status, the stock
took another plunge of 16% from the prior day's close at
$1.20 per share. From
October 25, 2011 through October 28, 2011, the Company experienced an
unprecedented high trading volume. The New York Stock
Exchange suspended trading in the Company's stock and moved to
de-list its shares on November 1,
2011.
If you purchased or acquired MF Global's securities between
May 28, 2010 (the date of the
Company's 2010 Annual Report) and October
28, 2011 and would like to learn more about your legal
options, you may contact Block & Leviton for more
information.
Block & Leviton is a Boston-based law firm representing investors
for violations of securities laws. The firm's lawyers have
collectively been prosecuting securities cases on behalf of
investors for over 40 years.
This notice may constitute attorney advertising.
SOURCE Block & Leviton LLP