Jon Corzine, the former MF Global Holdings chief executive, and two former colleagues failed to win the dismissal of a lawsuit by a trustee seeking to hold them responsible for the futures brokerage’s rapid demise and bankruptcy.
The New York Post reports that US District Judge Victor Marrero in Manhattan said on Monday the trustee may pursue damages over claims that Corzine, former chief operating officer Bradley Abelow and former chief financial officer Henri Steenkamp breached their duties of care and loyalty to the company.
'Defendants and other MF Global officers repeatedly increased the company’s exposure to risky bets on sovereign debt and shuffled funds among MF Global’s subsidiaries to cover a growing liquidity crisis', Marrero wrote. 'These facts give rise to reasonable inferences that defendants acted in bad faith'.
The judge did not rule on the case’s merits.
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