Alberta Investment Management Corp. (AIMCo) has recovered more than US$200 million for investors from defunct derivatives broker MF Global, its underwriters and auditors, the Edmonton-based pension fund manager announced on Wednesday.
AIMCo and the Virginia Retirement System served as co-lead plaintiffs against MF Global in a class action that followed the failure of the broker dealer in 2011.
The Alberta pension fund manager reports that US$204.4 million has been successfully recovered on behalf of investors. The total includes: a US$64.5 million settlement with former officers and directors of MF Global, including former CEO Jon Corzine; a US$74.9 million settlement with some of the firm’s underwriters; and a US$65 million settlement with MF Global’s outside auditor, PricewaterhouseCoopers LLP.
Litigation continues against the remaining underwriters who carried out MF Global’s the final $US325 million bond offering, said AIMCo says in a statement.
“AIMCo considers its fiduciary obligations to our Alberta clients to be of paramount importance. Companies that do not adhere to those same high standards should know that we will work tirelessly, and exhaust all available avenues, to ensure our clients best interests are preserved,” says Kevin Uebelein, CEO of AIMCo, in a statement. “The markets in which we operate seek to ensure a fair and a level playing field for all investors, and AIMCo is committed to be a leader in ensuring that integrity is maintained. We are pleased to have secured this settlement on behalf of all applicable investors in MF Global.”
“This excellent result serves as proof that committed institutional lead plaintiffs are critical for furthering the systemic stability of financial markets and obtaining meaningful recoveries in investor litigation,” adds Dominic Auld, partner with New York-based law firm, Bleichmar Fonti Tountas & Auld LLP, which is representing AIMCo in the litigation.
Last month, Auld appeared on a panel at a conference in Toronto organized by the Canadian Foundation for Advancement of Investor Rights (FAIR Canada), which examined the role of whistleblowers in regulatory enforcement and class actions, and the possible impact on investor recovery.