MF Global’s Trustee Sues Firm’s 3 Top Executives

A bankruptcy trustee has sued Jon S. Corzine and other former MF Global executives, claiming they were “grossly negligent” in the lead-up to the brokerage firm’s collapse. The action by the trustee, Louis J. Freeh, comes just weeks after he agreed to postpone the lawsuit and enter mediation with Mr. Corzine. Now, by filing litigation that appeared to catch the MF Global executives off guard, Mr. Freeh may have jeopardized those talks. A spokesman for Mr. Corzine, Steven Goldberg, disputed the charges and questioned why Mr. Freeh was even filing the case. “We question why the trustee chose to file this lawsuit, which is filled with seriously flawed allegations, while he is participating in court-ordered mediation of these very claims.”
More in the New York Times here.

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