Skip to main content
MENU
Subscribe
  • Sign Up Free
  • LOGIN
  • Subscribe
  • Topics
    • Alternatives
    • Consultants
    • Coronavirus
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Face to Face
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Opinion
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Russia-Ukraine War
    • SECURE 2.0
    • Special Reports
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • Climate Change: The Inescapable Opportunity
    • Impact Investing
    • 2022 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2022 Defined Contribution East Conference
    • 2022 DC Investment Lineup Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Performance Data
    • P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
    • Future of Investments Research Series
    • Charts & Infographics
    • Polls
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2023 Defined Contribution East
    • 2023 ESG Investing
Breadcrumb
  1. Home
  2. COURTS
November 13, 2013 12:00 AM

Ruling upholds Virginia Retirement System, AIMCo complaint against MF Global

Barry B. Burr
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Bloomberg
    Jon S. Corzine

    Virginia Retirement System and Alberta Investment Management Corp. may proceed with their class-action securities lawsuit against MF Global Holdings Ltd.; Jon S. Corzine, who was its chairman and CEO; and Goldman Sachs among other defendants, after a ruling Tuesday in U.S. District Court.

    In denying a motion to dismiss the case, Judge Victor Marrero of the U.S. District Court in New York likened MF Global's collapse to a train wreck, including $1.6 billion in customer funds that were “improperly commingled and used to cover questionable company transaction.”

    The $59.7 billion Richmond-based VRS and the province of Alberta, whose C$70 billion (US$66.9 billion) in pension, endowment and government funds Edmonton-based AIMCo oversees, sued MF Global and underwriters of notes it offered over losses in stock and debt securities caused by the firm's collapse, revelations of missing assets and bankruptcy filing.

    “Defendants seem convinced that no one named in this lawsuit could possibly have done anything wrong,” Mr. Marrero wrote in his decision, denying their motion.

    VRS and Alberta allege MF Global's offering documents contained inaccuracies and omissions, said Salvatore J. Graziano, partner in law firm Bernstein Litowitz Berger & Grossmann, representing VRS.

    MF Global and the underwriters “had a legal obligation to make sure the offering documents are accurate,” Mr. Graziano said.

    The lawsuit doesn't specify the losses of VRS and AIMCo. In all, stock- and debtholders' losses were in the hundreds of millions of dollars, Mr. Graziano said.

    Because of the ruling, VRS and Alberta may now proceed to take discovery and seek court certification of the lawsuit as a class action; both activities had been on hold because of the motion, Mr. Graziano said. He had no time frame for proceeding.

    VRS and Alberta were appointed co-lead plaintiffs in December 2011, he said.

    Other defendants include Citigroup Global Markets; Deutsche Bank Securities; J.P. Morgan Securities; Merrill, Lynch, Pierce, Fenner & Smith; RBS Securities; BMO Capital Markets; Commerz Markets; Jefferies & Co.; Lebenthal & Co.; Natixis Securities North America; Sandler O'Neill & Partners; and U.S. Bancorp Investments.

    Jeanne Chenault, VRS director of public relations, couldn't be reached for comment. Denes Nemeth, AIMCo manager, corporate communications, said he was unable to respond by press time.

    Related Articles
    MF Global trustee sues former CEO for causing bankruptcy
    MF Global settles with CFTC; Corzine and O'Brien face civil penalties, trading …
    Judge gives nod to CFTC-MF Global settlement
    MF Global gets go-ahead to finish restitution to clients
    Alberta Investment Management returns 12.5% in 2013
    Alberta Investment Management starts CEO succession search
    Recommended for You
    courtroom gavel books 1550_i.jpg
    ERISA lawsuit against Olin Corp. dismissed again
    ONLINE_180629880_AR_0_EJBZKXTYSLGZ.jpg
    Judge throws out most ERISA violation allegations against Schneider Electric Holdings
    University_of_Southern_California_i.jpg
    University of Southern California settles 6-year-old ERISA lawsuit, avoiding trial
    The Institutional Investor's Guide to ESG Investing
    Sponsored Content: The Institutional Investor's Guide to ESG Investing

    Reader Poll

    January 25, 2023
    SEE MORE POLLS >
    Sponsored
    White Papers
    Show Me the Income: Discovering plan sponsor and participant preferences for cr…
    The Future of Infrastructure: Building a Better Tomorrow
    Fulcrum Issues: Equity Returns and Inflation — Choose Your Own Adventure
    What Matters Most in Considering a Private Debt Strategy
    Why pursue direct lending in the core middle market?
    Research for Institutional Money Management
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    December 12, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Coronavirus
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Face to Face
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Opinion
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Russia-Ukraine War
      • SECURE 2.0
      • Special Reports
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • Climate Change: The Inescapable Opportunity
      • Impact Investing
      • 2022 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2022 Defined Contribution East Conference
      • 2022 DC Investment Lineup Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Performance Data
      • P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
      • Future of Investments Research Series
      • Charts & Infographics
      • Polls
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2023 Defined Contribution East
      • 2023 ESG Investing