SOURCE: Bernstein Litowitz Berger & Grossmann LLP

November 21, 2011 17:08 ET

BLB&G Advising Institutional Investors Regarding the Recovery of Losses From the Collapse of MF Global

NEW YORK, NY--(Marketwire - Nov 21, 2011) - In response to numerous inquiries by institutional investors who purchased bonds and stock issued by MF Global Holdings Ltd ("MF Global" or the "Company"), the law firm of Bernstein Litowitz Berger & Grossmann LLP ("BLB&G" or the "Firm") announced that it is actively advising investors with respect to their rights and potential claims stemming from MF Global's collapse.

MF Global's bankruptcy has caused severe financial harm to bondholders and stockholders who purchased MF Global securities during the period of November 5, 2009 to October 31, 2011. BLB&G is currently advising several large, prominent investors in these securities concerning potential claims arising under the federal securities laws and U.S. bankruptcy laws against certain of the Company's senior officers and directors, the underwriters of MF Global's 2011 debt offerings, and the Company's independent auditor. MF Global's 2011 debt offerings, which raised nearly $1 billion in proceeds for the Company, include: (1) a $287.5 million offering of convertible senior notes due 2016, which closed on February 11, 2011; (2) a $325 million offering of convertible senior notes due 2018, which closed August 2, 2011; and (3) a $325 million offering of senior unsecured notes, which closed on August 8, 2011.

The federal securities law violations under investigation by BLB&G concern potential materially false and misleading statements and omissions issued in securities filings and earnings presentations regarding MF Global's financial position, including its substantial exposure to European sovereign debt, its repo transactions and value-at-risk accounting methods that hid the Company's risk exposure and ailing core business, its deficient risk management and inadequate internal controls, its inflated earnings and undercapitalization, as well as MF Global's dealings with government regulators about these topics.

Claims under the federal securities laws offer investors in MF Global bonds and common stock a parallel source of recovery alongside the bankruptcy process. Claims under the Securities Act of 1933, for example, present viable sources of recovery for losses on bond investments, including from large, solvent investment banks that underwrote MF Global's 2011 bond offerings.

BLB&G has nearly thirty years of experience recovering assets on behalf of institutional investors and has some of the largest bond and common stock recoveries in history. Since its founding in 1983, BLB&G has recovered over $20 billion for its institutional investor clients and other defrauded investors. In addition to billions of dollars of recoveries on behalf of equity investors, the Firm has recovered billions of dollars for bondholders in litigation arising from some of the most high-profile bond cases. For example, in the context of the WorldCom, Inc. bankruptcy, BLB&G obtained the second largest securities litigation recovery in U.S. history, with approximately $4.9 billion or 80% of the total recovery allocated to bondholders. As a result, many bondholders received nearly 60% and 70%, respectively, of their recognized losses under the settlement allocation. In the context of the Refco, Inc. bankruptcy, the fourth largest bankruptcy in U.S. history, BLB&G obtained a $407 million recovery for investors, with approximately $337 million or over 80% of the settlement allocated to bondholders and other investors in Refco offerings. More recently, in a case involving Wachovia Corp., BLB&G obtained a recovery of $627 million on behalf of holders of bonds and other preferred securities, in the largest settlement ever in a class action asserting claims under the Securities Act of 1933.

BLB&G Senior Partners Gerald H. Silk and Blair A. Nicholas are leading this investigation on behalf of institutional investors. If you wish to discuss this investigation, or have BLB&G put you in touch with other MF Global bond or common stock holders, or have any questions concerning your rights or interests in MF Global securities, please see the contact information below.

This press release may be considered attorney advertising in some jurisdictions under the applicable law and ethical rules.

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