“A $90 million settlement of an investor lawsuit against MF Global Holdings Ltd. and its former parent, Man Group Plc, over a 2008 wheat-trading loss was cast into doubt by the futures broker’s bankruptcy filing.
A Manhattan federal judge is scheduled to decide on Nov. 18 whether to approve the settlement of the class-action, or group, suit against MF Global, Man Group, underwriters of MF Global’s initial public offering in July 2007, and some of the firm’s officers and directors.
The settlement allows investors to back out of the deal if they’re not paid the full $90 million, according to court records. Lawsuits against the firm were automatically halted after MF Global filed for bankruptcy protection on Oct. 31. A bankruptcy judge must decide whether MF Global may contribute to the accord. MF Global’s portion of the settlement, which is on behalf of shareholders from July 2007 to February 2008, is $2.5 million.”