Jon Corzine, a former Democratic New Jersey senator and governor, agreed with fellow former directors and officers at MF Global Holdings to settle an investor lawsuit for $64.5 million, NJ.com reported.
In reaching the settlement, Corzine, who assumed the position of CEO at MF Global in 2010 and weathered the firm's bankruptcy proceedings until it eventually collapsed, and his fellow executives will resolve allegations made by investors that they made false claims about MF Global's control and liquidity in company filings.
On Tuesday, New York U.S. District Judge Victor Marrero granted preliminary approval to the settlement, deeming it "fair, reasonable and adequate." Marrero scheduled a hearing on the settlement for November.
A former chair of Goldman Sachs, Corzine served five years in the U.S. Senate before being elected to one term as New Jersey governor in 2005.
MF Global, infamous for making a bad $6.3 billion investment in European bonds, filed for bankruptcy in 2011 after upwards of $1 billion in customer money was deemed missing. It was eventually discovered that the money was used to fund the company's operations.
The firm settled another lawsuit with the U.S. Commodity Futures Trading Commission last December, paying $1.2 billion in restitution and a $100 million fine for customer losses in the firm's folding.