2012-10-23yahoo.com

Corzine, former colleagues and several banks, including JPMorgan Chase & Co (NYSE:JPM - News) and Goldman Sachs Group Inc (NYSE:GS - News), filed papers on Friday night to dismiss investor litigation over MF Global's collapse. The company's October 31, 2011, bankruptcy was Wall Street's biggest meltdown since 2008.

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But lawyers for Corzine, MF Global's former chairman and chief executive officer, said there was no securities fraud. They said the allegations merely suggested that Corzine mismanaged the company, was too optimistic, or failed to predict a liquidity squeeze prompted in part by credit rating downgrades.

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"Plaintiffs have not alleged any facts from which it could be inferred that Mr. Corzine knew prior to October 30, 2011 that MF Global would not be able to survive," Corzine's lawyers wrote. "Plaintiffs' theory that Mr. Corzine had fraudulent intent or participated in a fraud makes no sense."


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