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Farmers File Class Action against MF Global

January 10, 2012
By: Sara Schafer, Farm Journal Media Business and Crops Editor
 
 

At the Russell Smith Federal Courthouse in Missoula, Mont., yesterday, four farmers filed a lawsuit in relation to the collapse of MF Global.

The class action lawsuit was filed on behalf of MF Global customers alleging that MF Global’s former officers including former CEO Jon Corzine, with the help of the Company’s independent auditor, PricewaterhouseCoopers LLP, and its chief banker JPMorgan Chase & Co., improperly raided customer brokerage accounts to meet the firm’s liquidity needs and backstop its souring bets on European sovereign debt instruments.
 
The four farmers include Marty Klinker, a farmer from Fairfield, Mont.; Rocking K Land and Cattle, a corporation which raises cattle in Montana; Philip Timothy Johnson, a farmer from Dutton, Mont.; and Wade Jacobsen, a farmer and rancher from Sun River, Mont. They are represented by Cotchett, Pitre & McCarthy and Anderson, Baker & Swanson.
 
 

 

Background of MF Global Collapse

On Oct. 31, 2011, MF Global, Inc. a brokerage firm responsible for approximately 38,000 commodities futures customer accounts declared, the 8th largest bankruptcy in U.S. history. On that same day, MF Global disclosed the disappearance of around $1.2 billion from the segregated accounts of its customers.  
 
Since that time, farmers and others in Montana and across the country have been waiting for the return of their funds and to be made whole.  The law firms involved report that several investigations are currently proceeding into the disappearance of the funds.

 
For More Information
The following stories have been featured on AgWeb.com and give further background and analysis of the MF Global debacle.
 
 
 

Former MF Global CEO Called to Testify before Senate Committee

MF Global Ripples Still Moving

Scale of MF Global Bankruptcy Remains To Be Seen

 


 

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RELATED TOPICS: Farm Business, Marketing, Economy

 

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