{"id":5348,"date":"2012-09-05T00:00:00","date_gmt":"2012-09-05T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2012\/09\/exmf_global_ceo_john_corzine_s"},"modified":"2022-04-28T15:44:01","modified_gmt":"2022-04-28T20:44:01","slug":"exmf-global-ceo-john-corzine-s","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/exmf-global-ceo-john-corzine-s\/","title":{"rendered":"Ex-MF Global CEO John Corzine Says Bankruptcy Trustee\u2019s Bid to Join Investors\u2019 Class Action Securities Litigation is Hurting His Defense"},"content":{"rendered":"<p>According to Jon Corzine, the ex-CEO of MF Global Holdings Ltd. (MFGLQ), bankruptcy trustee James Giddens\u2019s efforts to be part of some of the investor class action lawsuits against the firm\u2019s former and current executives are negatively impacting his defense. Corzine, who is also Goldman Sachs Group Inc.&#8217;s (GS) (GS) former co-chairman, left his position at MF Global last year, mere days after the brokerage giant failed in the wake of losses it sustained on European sovereign debt and its overwhelming inability to account for about $1.6 billion in customer funds. MF Global would go on to file for bankruptcy protection.<\/p>\n<p>Rather than file his own securities lawsuit, Giddens has decided to work with the lawyers of the firm\u2019s customers. He won\u2019t join them as a plaintiff but he will \u201cassign\u201d his legal claims to their attorneys and fully participate in their cases. Giddens considers it totally \u201cappropriate\u201d for his office to join forces with the plaintiffs\u2019 securities fraud lawsuits, and he believes that this cooperation agreement is the \u201cmost efficient, expedited and cost-effective\u201d means of getting back additional assets for MF Global clients and creditors.<\/p>\n<p>Meantime, Corzine and other ex- and current MF Global executives are complaining that this arrangement would give Giddens complete and total authority over the documents and books they would be able to get in their defense and that this unfairly limits them. Per the former executives&#8217; lawyers, restricting the objectors\u2019 rights to obtain discovery deprives them of the chance to a proper defense, violates due process principals, and is not in line with the goals and requirements of the federal rules that preside over civil litigation. (Also opposing Giddens\u2019s cooperation agreement with the plaintiffs and their lawyers is ex-FBI director Louis Freeh, who is tasked with wrapping up MF Global Holdings Ltd.\u2019s affairs. He believes that the deal oversteps Giddens\u2019s authority and that the bankruptcy trustee is moving claims that belong to the holding company\u2019s creditors and not the brokerage\u2019s customers.)<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/exmf-global-ceo-john-corzine-s\/\"  title=\"Continue Reading Ex-MF Global CEO John Corzine Says Bankruptcy Trustee\u2019s Bid to Join Investors\u2019 Class Action Securities Litigation is Hurting His Defense\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>According to Jon Corzine, the ex-CEO of MF Global Holdings Ltd. (MFGLQ), bankruptcy trustee James Giddens\u2019s efforts to be part of some of the investor class action lawsuits against the firm\u2019s former and current executives are negatively impacting his defense. Corzine, who is also Goldman Sachs Group Inc.&#8217;s (GS) (GS) former co-chairman, left his position [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3752,4009],"tags":[],"class_list":["post-5348","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-mf-global"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Ex-MF Global CEO John Corzine Says Bankruptcy Trustee\u2019s Bid to Join Investors\u2019 Class Action Securities Litigation is Hurting His Defense &#8212; Investor Lawyers Blog &#8212; September 5, 2012<\/title>\n<meta name=\"description\" content=\"According to Jon Corzine, the ex-CEO of MF Global Holdings Ltd. (MFGLQ), bankruptcy trustee James Giddens\u2019s efforts to be part of some of the investor &#8212; September 5, 2012\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/exmf-global-ceo-john-corzine-s\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Ex-MF Global CEO John Corzine Says Bankruptcy Trustee\u2019s Bid to Join Investors\u2019 Class Action Securities Litigation is Hurting His Defense &#8212; Investor Lawyers Blog &#8212; September 5, 2012\" \/>\n<meta name=\"twitter:description\" content=\"According to Jon Corzine, the ex-CEO of MF Global Holdings Ltd. (MFGLQ), bankruptcy trustee James Giddens\u2019s efforts to be part of some of the investor &#8212; September 5, 2012\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Ex-MF Global CEO John Corzine Says Bankruptcy Trustee\u2019s Bid to Join Investors\u2019 Class Action Securities Litigation is Hurting His Defense &#8212; Investor Lawyers Blog &#8212; September 5, 2012","description":"According to Jon Corzine, the ex-CEO of MF Global Holdings Ltd. 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(MFGLQ), bankruptcy trustee James Giddens\u2019s efforts to be part of some of the investor &#8212; September 5, 2012","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/exmf-global-ceo-john-corzine-s\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/exmf-global-ceo-john-corzine-s\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Ex-MF Global CEO John Corzine Says Bankruptcy Trustee\u2019s Bid to Join Investors\u2019 Class Action Securities Litigation is Hurting His Defense","datePublished":"2012-09-05T05:00:00+00:00","dateModified":"2022-04-28T20:44:01+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/exmf-global-ceo-john-corzine-s\/"},"wordCount":508,"articleSection":["Financial Firms","MF Global"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/exmf-global-ceo-john-corzine-s\/","url":"https:\/\/www.investorlawyers.com\/blog\/exmf-global-ceo-john-corzine-s\/","name":"Ex-MF Global CEO John Corzine Says Bankruptcy Trustee\u2019s Bid to Join Investors\u2019 Class Action Securities Litigation is Hurting His Defense &#8212; Investor Lawyers Blog &#8212; September 5, 2012","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2012-09-05T05:00:00+00:00","dateModified":"2022-04-28T20:44:01+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"According to Jon Corzine, the ex-CEO of MF Global Holdings Ltd. 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