Virginia Retirement System, Richmond, and the Canadian province of Alberta will lead a group lawsuit against Jon Corzine seeking compensation for losses from MF Global Holdings' collapse.
U.S. District Judge Victor Marrero in New York combined 12 lawsuits against Mr. Corzine and put the $51 billion retirement system and Alberta at the head as their combined investment losses of $19 million give them a larger stake in the suit than seven other applicants for lead plaintiff.
MF Global executives led by Mr. Corzine, New Jersey's former governor, made “materially misleading” statements about liquidity and financial controls, Joseph DeAngelis alleged in the first of the 12 similar suits. Mr. DeAngelis also named Henri Steenkamp, MF Global's CFO, and Bradley Abelow, its president.
J.P. Morgan Chase, MF Global's banker, should have noticed the “depletion” of customer money, and should have investigated, commodity customers said in a separate suit seeking unspecified restitution and damages.
Andrew Levander, a lawyer for Mr. Corzine, hasn't responded to e-mails seeking comment on the suits and Mary Sedarat, a J.P. Morgan Chase spokeswoman, has declined to comment.
The Virginia system and Alberta won over competition from investment funds and union pension trusts. They are typical of the class of investors who lost money on MF Global investments, the judge said.
The judge's order was signed Jan. 20 and entered on the docket Wednesday.
MF Global filed the eighth-largest U.S. bankruptcy with $41 billion in assets on Oct. 31, after making bets on European sovereign debt and getting margin calls. The parent company's commodities brokerage, which is being liquidated in a separate court proceeding, is missing an estimated $1.2 billion in customer assets. Mr. Corzine has said he doesn't know where the missing money is.