MF Global trustee suing former execs

By Wire services | August 16, 2012 | Last updated on August 16, 2012
1 min read

Trustee James Giddens—who’s overseeing the liquidation of the brokerage MF Global—has decided to sue some of its high-level execs, reports Financial Times.

He plans to join existing class-action lawsuits, which were launched against several senior MF Global employees; John Corzine, Henri Steenkamp, and Laurie Ferber are all named in various suits.

Read: Giddens seeks distribution MF Global clients

Giddens is in charge of recovering $1.6 billion in customer money, following the collapsed of the company last fall; it filed for bankruptcy protection after deep losses from a disastrous bet on European debt.

Read: RBC taking over MF Global accounts

In June, he said Corzine led MF Global to trade in unsafe securities and take on far greater risk than at comparable firms.

He said then he was deciding if he should sue Corzine for breach of fiduciary duty and negligence.

Wire services