Dimond Kaplan & Rothstein, P.A. is investigating claims on behalf of investors in:
MF Global 6.250% Senior Notes due 2016,
MF Global 3.375% Convertible Senior Notes due 2018, and
MF Global 1.875% Convertible Senior Notes due 2016.
The 6.250% notes are from a $325 million aggregate offering that was made in August of 2011. Jefferies served as the sole book-running manager for the offering. BofA Merrill Lynch, BMO Capital Markets, Lebenthal & Co., Commerzbank, Sandler O’Neill + Partners, Natixis and US Bancorp served as co-managers of the 6.250% offering. Investors may be able to recover their MF Global Senior Note investment losses.
The underwriters of a securities offerings are obligated to conduct adequate due diligence of the issuer during the underwriting process. We believe that underwriters either knew or should have known of the financial problems with the now-bankrupt MF Global. Investors are entitled to rely on underwriters, which should review the business and financials of a corporation issuing the securities and ensure the accuracy of securities registration statements and prospectuses. One of the roles of the underwriter is to ensure that the investing public is provided with full and fair disclosure of material information about the securities and the company issuing the securities. The failure to do so can subject an underwriter to liability.
Further, brokerage firms selling the securities are required to perform due diligence on securities and their issuers before selling the securities to the public. The failure to perform adequate due diligence can subject the selling brokerage firms to liability as well.
In September of 2011, only one month after the offering of the 6.250% Notes, regulators reported that MF Global was overvaluing some of its European debt holdings. As a result, FINRA required MF Global to inject more capital into the company. MF Global has admitted using clients’ money as its financial troubles mounted. Using clients’ money for its own business needs, however, would have been in violation of various legal and regulatory obligations owed to the clients.
If you purchased MF Global 6.250% Senior Notes due 2016, MF Global 3.375% Convertible Senior Notes due 2018, or MF Global 1.875% Convertible Senior Notes due 2016, please contact attorney Jeffrey Kaplan of Dimond Kaplan & Rothstein, P.A. at 888-578-6255 or jkaplan@dkrpa.com. You can also visit us on the web at www.dkrpa.com or www.investmentfraud-lawyer.com. From offices in Miami, West Palm Beach, Los Angeles, and New York, Dimond Kaplan & Rothstein, P.A. represents investment fraud victims throughout the United States and Latin America.
