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MF Global Employee Lawsuits to Be Handled by One Law Firm

February 1, 2012
[ by Melanie Gretchen ] MF Global's employees who claimed to be fired unfairly will be led by one law firm, the federal judge overseeing the brokerage firm's bankruptcy.  U.S. Bankruptcy Judge Martin Glenn has appointed Outten & Golden to lead litigation against James Giddens, the trustee liquidating the company's broker-deal unit, of firing the unit's 1,066 workers, without providing 60 days' notice required under federal and New York state labor law. Judge Glenn ended a "vitriolic battle," to avoid duplicate litigation, among three lawfirms including Outten filed between 11/11/11 and 11/14/11, seeking to lead the litigation on behalf of the unit's employees, before firm Harwood Feffer filed a similar lawsuit on 12/1/11. They then forged their efforts in a single lawsuit and argued that Harwood Feffer's lawsuit added nothing, with which Judge Martin agreed.  He rejected a request by firm Harwood Feffer to lead the case, on the grounds that its own lawsuit was filed later and "appears to be a nearly-word-for-word copy" of the original Outten lawsuit. This lawsuit is among many resulting from the 10/31/11 bankruptcy of MF Global, then headed by former New Jersey governor Jon Corzine.  The worker lawsuits: Thielmann et al v. MF Global Finance USA Inc et al, No. 11-ap-02880; Sivova v. MF Global Holdings Ltd, No. 11-ap-02881; Abruzzo et al v. MF Global Holdings Ltd et al, No. 11-ap-02882; and Greene et al v. MF Global Holdings Ltd et al, No. 11-ap-02921. The main bankruptcy case is: IN re: MF Global Holdings Ltd et al, No. 11-15059. For more details, go to [Reuters, 1/30/12].