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Compliance November 21, 2011
Pension Funds Sue JPMorgan & Goldman Sachs over Misleading Statements
November 21, 2011 (PLANSPONSOR.com) - JPMorgan Chase & Co. and Goldman Sachs Group Inc. were sued by two pension funds over claims they made misleading statements about the exposure of MF Global Holdings Ltd. securities to European sovereign debt, reports Bloomberg.
Reported by Tara Cantore
According to the article, as a result of the misstatements, MF Global’s stock traded at inflated prices. The complaint filed in the U.S. District Court for the Southern District of New York said, “While the extend of MF Global’s exposure to European sovereign debt was concealed, the defendants were able to raise some $900 million the offerings.”
MF Global Holdings, which was run by former Goldman Sachs co-CEO Jon Corzine, filed for bankruptcy on October 31 after making bets on sovereign debt and getting margin calls.
The complaint was filed by IBEW Local 90 Pension Fund and the Plumbers & Pipefitters’ Local #562 Pension Fund. Other companies named as defendants in the case include: Bank of America Corp.’s Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBS Securities Inc., Jefferies & Co., Corzine and MF Global officers.
The case is IBEW Local 90 Pension Fund v. Corzine, No.11-8401.
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