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MF Global Reaches Settlement in Platinum, Palladium Manipulation Lawsuit
Oct. 31, 2014 02:09PM PST
Precious MetalsReuters reported that MF Global Holdings will settle a class action lawsuit which accused the firm of manipulating platinum and palladium prices. The suit accuses MF Global, former MF Global trader Joseph Welsh of inflating platinum and palladium futures prices on the New York Mercantile Exchange from May 2006 to June 2008.
Reuters reported that MF Global Holdings will settle a class action lawsuit which accused the firm of manipulating platinum and palladium prices. The suit accuses MF Global, former MF Global trader Joseph Welsh of inflating platinum and palladium futures prices on the New York Mercantile Exchange from May 2006 to June 2008.
As quoted in the publication:
The proposed settlements, disclosed in court papers filed late Wednesday in Manhattan federal court, call for plaintiffs to receive nearly $21.1 million in allowed claims against the broker-dealer in its liquidation proceeding.
They also call for plaintiffs to receive $5.25 million in cash from MF Global’s insurer, and another $1 million from MF Global itself in exchange for assigning their claims against a former trader to the company.