MF Global Sued by Former Employees

FBN's Charlie Gasparino on the lawsuit former employees filed against MF Global for failing to give them proper notice before their firing.

MF Global Employees Sue Over Firings

Features Reuters

MF Global Holdings Ltd has been sued by former employees who said workers were not given proper notice before the Nov. 11 firing of all 1,066 at its broker-dealer unit.

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Monday's lawsuit filed with the U.S. bankruptcy court in Manhattan said MF Global failed to provide 60 days written notice of the terminations, as required under federal and New York state labor law.

It seeks class-action status on behalf of all affected workers, and to ensure payment of unpaid wages and bonuses, commissions and other benefits as MF Global works through the bankruptcy process.

A spokeswoman for James Giddens, the trustee liquidating the MF Global Inc broker-dealer unit, had no immediate comment. Giddens had announced the firings on Friday.

The named plaintiffs are Pierre-Yvan Desparois, a former vice president in credit risk management at MF Global's New York office; and Todd Thielmann, a floor broker who worked in its Chicago office.

MF Global filed for bankruptcy on Oct. 31 after its bets on European sovereign debt unnerved investors, credit agencies, customers and counterparties, causing liquidity to disappear.

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Jon Corzine, its chief executive, resigned four days later. Prior to taking over MF Global, Corzine had been a governor and senator for New Jersey, and had also run Goldman Sachs & Co .

The lawsuit is Thielmann et al v. MF Global Finance USA Inc. The main bankruptcy case is In re: MF Global Holdings Ltd et al, U.S. Bankruptcy Court, Southern District of New York, No. 11-15059. (Reporting by Jonathan Stempel in New York, editing by Gerald E. McCormick)