As the new year gets underway, we are now starting to see progress on the organization of the civil cases, brought by investors and customer, against MF Global, Jon Corzine, and others being blamed for its downfall. We at Hagens Berman have been following this case with our clients. The following is a rundown as to where the cases stand as of today,

On October 31, 2011, MF Global (OTC: MFGLQ), a leading participant in commodities and securities markets around the world, filed a voluntary petition pursuant to Chapter 11 of the Bankruptcy Code in the Southern District of New York in what is said to be the eight (8th) largest bankruptcy in U. S. history.

Just prior to the bankruptcy, MF Global’s U.S. subsidiary, MF Global, Inc., reported to its regulators that it had discovered a significant shortfall in its segregated customer commodities futures accounts.

On October 31, 2011, MF Global filed a voluntary petition pursuant to Chapter 11 of the Bankruptcy Code in the Southern District of New York. See Petition, In re MF Global Holdings Ltd., No. 11-15059 (Bankr. S.D.N.Y. Oct. 31, 2011). MFGI, MF Global’s U.S. subsidiary, is currently being liquidated under the auspices of the Securities Investor Protection Act (“SIPA”) and is subject to the exclusive jurisdiction of the United States Bankruptcy Court for the Southern District of New York. See In re MF Global, Inc., No. 11-2790 (SIPA) (Bankr. S.D.N.Y.). The SIPA Trustee of MFGI has reported that at the time of the bankruptcy there was a shortfall of up to $1.2 billion or more in MF Global’s segregated customer futures accounts. See “Statement from the Office of the Trustee for the Liquidation of MF Global Inc.,” Nov. 21, 2011. The Trustee’s statement is available at http://dm.epiq11.com/MFG/Project/default.aspx.

Numerous other subsidiaries of MF Global have filed for bankruptcy in the same court. See In re MF Global Finance USA, Inc., No. 11-15058 (Bankr. S.D.N.Y. Nov. 1, 2011); In re MF Global Market Services, LLC, No. 11-15809 (Bankr. S.D.N.Y. Dec. 19, 2011); In re MF Global FX Clear, LLC, No. 11-15810 (Bankr. S.D.N.Y. Dec. 19, 2011). Several adversary proceedings are also pending in bankruptcy court. See, e.g., Thielmann et al. v. MF Global et al., No. 11- 2880 (Bankr. S.D.N.Y.); Greene & Hurtado v. MF Global et al., No. 11-2921 (Bankr. S.D.N.Y.)

Plaintiffs cannot sue MF Global while it is under bankruptcy protection, but can sue the company's former executives, including CEO Jon S. Corzine. Since November 2011, at least sixteen (16) suits have been filed by investors and customers seeking to hold Corzine, his lieutenants and even the bankers (JPMorgan Chase) and auditors (PricewaterhouseCoopers) accountable. Stockholders were wiped out as the company went into bankruptcy, and customers may have lost over $1.2 billion stolen from their “segregated” customer accounts.

All of the MF Global Lawsuits arise out of the same set of facts and occurrences – the events surrounding the bankruptcy of New York headquartered MF Global and the reported shortfall in segregated customer futures accounts at MF Global – and allege the same or similar violations of the Securities Act of 1933, the Securities and Exchange Act of 1934, the Commodity Exchange Act, and various common law claims.

While suits have been filed around the country, the greatest concentration has been in the Southern District of New York where they have been consolidated under the direction of Judge Victor Marrero in Joseph Deangelis, et al., v Jon S. Corzine, et al., No. 1:11-cv-07866-VM. Recently Judge Marrero appointed Virginia Retirement System and Her Majesty the Queen in Right of Alberta to lead the class action on behalf of those investors who bought MF Global securities.

The Judge deferred until January 30, 2012 the time for customers to file to be lead plaintiff. The actions arise under different law, with different standards of proof, and are brought on behalf of customers who have different injuries. (MF Global Customers who want to consult regarding their rights to apply to be a lead plaintiff may contact Reed R. Kathrein at 510-725-3000 or [email protected].)

The suits filed by customers that have been consolidated include: David Accomazzo and Roberto E. Calle v. Corzine, No.1 :11-cv-8467 (the "Accomazzo Action"), which asserts claims under the Commodities Exchange Act on behalf of a proposed Class consisting of : persons, other than Defendants, their employees, affiliates and agents, who held money or other assets in MF Global customer accounts as of any time during the period October 24th through October 31, 2011 ("Class Period")

Summit Trust Company v. Corzine, No. 1: 12-cv-0087 (the "Summit Action"), asserting claims under the Commodity Exchange Act on behalf of a Class consisting of: persons, other than Defendants, their employees, affiliates and agents, who as of October 31, 2011, had one or more open commodity futures trading or derivative contract with MF Global and/or had money, securities or other property on deposit with MF Global as of that date for the purpose of transacting in commodity futures trading or derivative contracts, and who have sustained damage as a result of MF Global's failure to properly segregate customer funds.

Kay P. Tee, LLC v. Corzine, No. 1: 12-cv-195 (the "KPT Action"), bringing claims under common law, the Racketeer Influenced Corrupt Organization Act ("RICO"), and the Commodities Exchange Act on behalf of a Class consisting of: all MF Global commodity account holders or customers who held open futures positions and/or cash collateral or cash deposits for future collateral in their MF Global accounts and had not received a return of 100% of their funds as of close of business on November 2, 2011.

Others include Marcin v. Corzine, 12-cv-0499, U.S. District Court, Southern District of New York (customer class); Sapere CTA Fund, L.P. v. Corzine et al., No. 11‐cv‐9114 , U.S. District Court, Southern District of New York (individual) ; Henning-Carey Proprietary Trading, LLC et al v. Corzine, 1:11-cv-08717, U.S. District Court, Northern District of Illinois (class action stayed on January 24th pending JMDL ); Hirsch v. Corzine et al., No. 12‐cv‐10020 (E.D. Mich. Jan. 3, 2012); (class); and Klinker et al. v. J.P. Morgan Chase & Co., No. 12‐cv‐00005 (D. Mont. Jan. 9, 2012). (customer class).

With the exception of Henning-Carey in Illinois, Hirsch in Michigan, and Klinker in Montana, all have been filed in the Southern District of New York and are consolidated in front of Judge Marrero.

On January 5, 2012, the MF Global defendants initiated proceedings before Judicial Panel on Multidistrict Litigation (the “Judicial Panel” or “JPML”) pursuant to 28 U.S.C. § 1407 to transfer these actions to the United States District Court for the Southern District of New York. As noted above, the Henning case has been stayed pending the JMDL. No motion to stay has yet been filed in Klinker, but Klinker’s counsel has written to Judge Marrero and ask him to delay briefing on the appointment of lead plaintiff until after the MDL Panel decides on the transfer motions. We at Hagens Berman anticipate that all customer actions will be transferred to Judge Marrero in the Southern Distict of New York and consolidated into one case. We also anticipate that newly filed actions like Marcin, filed on January 20th, will also be consolidated.

The ten cases, which include the investor actions, that comprise the consolidated cases in New York are Deangelis v. Corzine et al., 11 CV 7866 (S.D.N.Y. Nov. 3, 2011); Espinoza v. Corzine et al., 11 CV 7960 (S.D.N.Y. Nov. 7, 2011); Petro v.Corzine et al., 11 CV 8253 (S.D.N.Y. Nov. 15, 2011); Double D Trading LLC v. Corzine et al., 11 CV 8271 (S.D.N.Y. Nov. 15, 2011); IBEW Local 90 Pension Fund et al. v. Corzine et al., 11 CV 8401 (S.D.N.Y. Nov. 18, 2011); Accomazzo & Calle Gracey v. Corzine et al., 11 CV 8467 (S.D.N.Y. Nov. 22, 2011); Rodriguez & Guillame v. Corzine et al., 11 CV 8815 (S.D.N.Y. Dec. 5, 2011); Daly v. Corzine et al., 11 CV 8823 (S.D.N.Y. Dec. 5, 2011); Context Partners Fund LP v. Corzine et al., 11 CV 8888 (S.D.N.Y. Dec. 6, 2011); and Sapere CTA Fund, L.P. v. Corzine et al., 11 CV 9114 (S.D.N.Y. Dec. 13, 2011). The plaintiff in Petro subsequently filed a notice of voluntary dismissal.

One thing is certain, more suits will be filed. However, it is clear where the proceedings are headed…procedurally.