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DeANGELIS v. CORZINE

DeANGELIS v. CORZINE

Nos. 11 Civ. 7866 (VM) (JCF), 12 MD 2338

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JOSEPH DeANGELIS, et al., Plaintiffs, v. JON S. CORZINE, et al., Defendants. IN RE MF GLOBAL HOLDINGS LTD. INVESTMENT LITIGATION.

United States District Court, S.D. New York.https://leagle.com/images/logo.png

January 15, 2015.

Attorney(s) appearing for the Case

Virginia Retirement System, Lead Plaintiff, represented by Richard David Gluck , Bernstein Litowitz Berger & Grossmann LLP, Cynthia A Hanawalt , Dominic J. Auld , Gerald H. Silk , Bernstein Litowitz Berger & Grossmann LLP, Hannah Elizabeth Ross , Bernstein Litowitz Berger & Grossmann LLP, Jai Kamal Chandrasekhar , Bernstein Litowitz Berger & Grossmann LLP, Javier Bleichmar , Salvatore Jo Graziano , Bernstein Litowitz Berger & Grossmann LLP & Stefanie Jill Sundel , Bernstein, Litowitz, Berger & Grossman.

Her Majesty the Queen in Right of Alberta, Lead Plaintiff, represented by Richard David Gluck , Bernstein Litowitz Berger & Grossmann LLP, Cynthia A Hanawalt , Dominic J. Auld , Gerald H. Silk , Bernstein Litowitz Berger & Grossmann LLP, Hannah Elizabeth Ross , Bernstein Litowitz Berger & Grossmann LLP, Jai Kamal Chandrasekhar , Bernstein Litowitz Berger & Grossmann LLP, Javier Bleichmar , Salvatore Jo Graziano , Bernstein Litowitz Berger & Grossmann LLP & Stefanie Jill Sundel , Bernstein, Litowitz, Berger & Grossman.

Joseph Deangelis, Individually and on behalf of all others similarly situated, Plaintiff, represented by Brian C. Kerr , Brower Piven, A Professional Corporation, David A.P. Brower , Brower Piven, Jason Mathew Leviton , Berman DeValerio, Jeffrey Craig Block , Block & Leviton LLP, Scott A Mays , Berman DeValerio & Whitney Erin Street , Block & Leviton LLP.

Jerome Vrabel, Plaintiff, represented by Amanda Marjorie Steiner , Girard Gibbs LLP, Christina H. C. Sharp , Girard Gibbs LLP, Daniel Charles Girard , Girard Gibbs LLP & Salvatore Jo Graziano , Bernstein Litowitz Berger & Grossmann LLP.

Rogers Varner, Jr., Plaintiff, represented by Stuart Halkett McCluer , McCulley Mccluer PLLC, Merrill G Davidoff , Berger & Montague, P.C & R. Bryant McCulley , McCulley McCluer PLLC.

Bearing Fund LP, Plaintiff, represented by Merrill G Davidoff , Berger & Montague, P.C.

Nader Tavakoli, As Litigation Trustee Of The MF Global Litigation Trust, Plaintiff, represented by Christopher J. Lovrien , Jones Day, Michael S. McCauley , Jones Day, Michael C. Schneidereit , Jones Day & Peter E. Davids , Jones Day.

Waterstone MF Fund, Ltd., Plaintiff, represented by Jeff I Ross , Ross & Orenstein LLC & John B. Orenstein , Ross & Orenstein LLC.

AQR Funds-AQR Diversified Arbitrage Fund, Plaintiff, represented by Jeff I Ross , Ross & Orenstein LLC & John B. Orenstein , Ross & Orenstein LLC.

AG Ofcon, Ltd., Plaintiff, represented by Jeff I Ross , Ross & Orenstein LLC & John B. Orenstein , Ross & Orenstein LLC.

Prime Captial Master SPC-GOT WAT MAC Segregated Portfolio, Plaintiff, represented by Jeff I Ross , Ross & Orenstein LLC & John B. Orenstein , Ross & Orenstein LLC.

Vermont Mutual Insurance Company, Plaintiff, represented by Jeff I Ross , Ross & Orenstein LLC & John B. Orenstein , Ross & Orenstein LLC.

Lord Abbett Investment Trust - Lord Abbett Convertible Fund, Plaintiff, represented by Jeff I Ross , Ross & Orenstein LLC & John B. Orenstein , Ross & Orenstein LLC.

AQR UCITS Funds, Plaintiff, represented by Jeff I Ross , Ross & Orenstein LLC & John B. Orenstein , Ross & Orenstein LLC.

CNH Diversified Opportunities Master Account, L.P., Plaintiff, represented by Jeff I Ross , Ross & Orenstein LLC & John B. Orenstein , Ross & Orenstein LLC.

AQR Delta Master Account, L.P., Plaintiff, represented by Jeff I Ross , Ross & Orenstein LLC & John B. Orenstein , Ross & Orenstein LLC.

American Physicians Assurance Company, Plaintiff, represented by Jeff I Ross , Ross & Orenstein LLC & John B. Orenstein , Ross & Orenstein LLC.

Lazard Asset Management LLC, on behalf of certain of its managed accounts, Plaintiff, represented by Jeff I Ross , Ross & Orenstein LLC & John B. Orenstein , Ross & Orenstein LLC.

Suttonbrook Eureka Fund, LP, Plaintiff, represented by Jeff I Ross , Ross & Orenstein LLC & John B. Orenstein , Ross & Orenstein LLC.

CSAA Insurance Group, Plaintiff, represented by Jeff I Ross , Ross & Orenstein LLC & John B. Orenstein , Ross & Orenstein LLC.

Waterstone Market Neutral Fund, Plaintiff, represented by Jeff I Ross , Ross & Orenstein LLC & John B. Orenstein , Ross & Orenstein LLC.

The Doctors Company Insurance Group, Plaintiff, represented by Jeff I Ross , Ross & Orenstein LLC & John B. Orenstein , Ross & Orenstein LLC.

AG Oncon, LLC, Plaintiff, represented by Jeff I Ross , Ross & Orenstein LLC & John B. Orenstein , Ross & Orenstein LLC.

Waterstone Offshore ER Fund, Ltd., Plaintiff, represented by Jeff I Ross , Ross & Orenstein LLC & John B. Orenstein , Ross & Orenstein LLC.

Suttonbrook Captial Portfolio LP, Plaintiff, represented by Jeff I Ross , Ross & Orenstein LLC & John B. Orenstein , Ross & Orenstein LLC.

CNH CA Master Account, L.P., Plaintiff, represented by Jeff I Ross , Ross & Orenstein LLC & John B. Orenstein , Ross & Orenstein LLC.

AQR Opportunistic Premium Offshore Fund L.P., Plaintiff, represented by Jeff I Ross , Ross & Orenstein LLC & John B. Orenstein , Ross & Orenstein LLC.

Pension, Hospitalization and Benefit Plan of the Electrical Industry - Pension Trust Account, Plaintiff, represented by Jeff I Ross , Ross & Orenstein LLC & John B. Orenstein , Ross & Orenstein LLC.

HFR CA Lazard Rathmore Master Trust, Plaintiff, represented by Jeff I Ross , Ross & Orenstein LLC & John B. Orenstein , Ross & Orenstein LLC.

Lazard Rathmore Master Fund, L.P., Plaintiff, represented by Jeff I Ross , Ross & Orenstein LLC & John B. Orenstein , Ross & Orenstein LLC.

AQR Absolute Return Master Account, L.P., Plaintiff, represented by Jeff I Ross , Ross & Orenstein LLC & John B. Orenstein , Ross & Orenstein LLC.

AQR Delta Sapphire Fund, L.P., Plaintiff, represented by Jeff I Ross , Ross & Orenstein LLC & John B. Orenstein , Ross & Orenstein LLC.

Monica Rodriguez, individually and on behalf of all others similarly situated, Consolidated Plaintiff, represented by Amanda Marjorie Steiner , Girard Gibbs LLP, Christina H. C. Sharp , Girard Gibbs LLP, Daniel Charles Girard , Girard Gibbs LLP, Edward H. Glenn, Jr. , Zamansky & Associates, L.L.C., Jacob H. Zamansky , Zamansky & Associates LLC & Salvatore Jo Graziano , Bernstein Litowitz Berger & Grossmann LLP.

Cyrille Guillaume, individually and on behalf of all others similarly situated, Consolidated Plaintiff, represented by Amanda Marjorie Steiner , Girard Gibbs LLP, Daniel Charles Girard , Girard Gibbs LLP, Edward H. Glenn, Jr. , Zamansky & Associates, L.L.C. & Jacob H. Zamansky , Zamansky & Associates LLC.

Davide Accomazzo, Consolidated Plaintiff, represented by Christopher J. Gray , Law Office of Christopher J. Gray, P.C & Stephen David Oestreich , Entwistle & Cappucci LLP.

Sapere CTA Fund, LP, Consolidated Plaintiff, represented by John J. Witmeyer, III , Ford, Marrin, Esposito, Witmeyer & Gleser, L.L.P. & Jon Ryan Grabowski , Ford Marrin Esposito Witmeyer & Gleser, LLP.

Summit Trust Company, on behalf of itself and all others similarly situated, Consolidated Plaintiff, represented by Andrei V. Rado , Milberg LLP, Carla F. Fredericks , Milberg LLP, Charles Michael Plavi , Finkelstein & Krinsk, LLP, Jeffrey R. Krinsk , Finkelstein & Krinsk, LLP, Mark Leland Knutson , Finkelstein and Krinsk & Merrill G Davidoff , Berger & Montague, P.C.

Kay P. Tee, LLC, Consolidated Plaintiff, represented by Daniel John Walker , Berger & Montague, P.C., Francis P. Karam , Francis P. Karam, Esq. PC, Merrill G Davidoff , Berger & Montague, P.C, Michael Dell'Angelo , Berger & Montague, P.C. & Roger Joel Bernstein , Roger J. Bernstein, Attorney at Law.

Thomas G. Moran, Consolidated Plaintiff, represented by Daniel John Walker , Berger & Montague, P.C., Merrill G Davidoff , Berger & Montague, P.C, Michael Dell'Angelo , Berger & Montague, P.C. & Roger Joel Bernstein , Roger J. Bernstein, Attorney at Law.

John Andrew Szokolay, Consolidated Plaintiff, represented by Daniel John Walker , Berger & Montague, P.C., Merrill G Davidoff , Berger & Montague, P.C, Michael Dell'Angelo , Berger & Montague, P.C. & Roger Joel Bernstein , Roger J. Bernstein, Attorney at Law.

Donald Tran, Consolidated Plaintiff, represented by Daniel John Walker , Berger & Montague, P.C., Merrill G Davidoff , Berger & Montague, P.C, Michael Dell'Angelo , Berger & Montague, P.C. & Roger Joel Bernstein , Roger J. Bernstein, Attorney at Law.

Gregory Bartell, Consolidated Plaintiff, represented by Clinton A. Krislov , Krislov & Associates, Ltd..

Daniel M Pierce, Consolidated Plaintiff, represented by Clinton A. Krislov , Krislov & Associates, Ltd..

Henning-Carey Proprietary Trading, L.L.C, Consolidated Plaintiff, represented by Brittany E. Kirk , Nisen & Elliott LLC, Claire E. Gorman , Nisen & Elliott & Michael H. Moirano , Nisen & Elliott, LLC.

Charles Carey, Consolidated Plaintiff, represented by Brittany E. Kirk , Nisen & Elliott LLC, Claire E. Gorman , Nisen & Elliott & Michael H. Moirano , Nisen & Elliott, LLC.

Joseph Niciforo, Consolidated Plaintiff, represented by Brittany E. Kirk , Nisen & Elliott LLC, Claire E. Gorman , Nisen & Elliott & Michael H. Moirano , Nisen & Elliott, LLC.

Robert Tierney, Consolidated Plaintiff, represented by Brittany E. Kirk , Nisen & Elliott LLC, Claire E. Gorman , Nisen & Elliott & Michael H. Moirano , Nisen & Elliott, LLC.

Brian Fisher, Consolidated Plaintiff, represented by Brittany E. Kirk , Nisen & Elliott LLC, Claire E. Gorman , Nisen & Elliott & Michael H. Moirano , Nisen & Elliott, LLC.

Shane McMahon, Consolidated Plaintiff, represented by Brittany E. Kirk , Nisen & Elliott LLC, Claire E. Gorman , Nisen & Elliott & Michael H. Moirano , Nisen & Elliott, LLC.

Michael Mette, Consolidated Plaintiff, represented by Brittany E. Kirk , Nisen & Elliott LLC, Claire E. Gorman , Nisen & Elliott & Michael H. Moirano , Nisen & Elliott, LLC.

Timothy Zaug, Consolidated Plaintiff, represented by Brittany E. Kirk , Nisen & Elliott LLC, Claire E. Gorman , Nisen & Elliott & Michael H. Moirano , Nisen & Elliott, LLC.

PS Energy Group Inc, Consolidated Plaintiff, represented by Merrill G Davidoff , Berger & Montague, P.C.

Mark Kennedy, Consolidated Plaintiff, represented by Merrill G Davidoff , Berger & Montague, P.C.

Thomas S. Wacker, Consolidated Plaintiff, represented by Merrill G Davidoff , Berger & Montague, P.C.

U.S. Commodity Futures Trading Commission, Consolidated Plaintiff, represented by Chad Eric Silverman , CFTC, David William Oakland , U.S. Commodity Futures Trading Commission, Douglas Kent Yatter , Commodity Futures Trading Commission, Kenneth Brent Tomer , U.S. Commodity Futures Trading Commission, Sheila Louise Marhamati , U.S. Commodity Futures Trading Commission & Steven Ira Ringer , Commodity Futures Trading Commission.

The Bagwell Group, Movant, represented by Jeremy Alan Lieberman , Pomerantz LLP.

Banyan Capital Master Fund, Ltd., Movant, represented by Curtis Victor Trinko , Law Offices of Curtis V. Trinko, LLP.

Building Trades United Pension Trust Fund, Movant, represented by Danielle Suzanne Myers , Robbins Geller Rudman & Dowd LLP, Darren J. Robbins , Robbins Geller Rudman & Dowd LLP & Samuel Howard Rudman , Robbins Geller Rudman & Dowd LLP.

Union Asset Management Holding AG, Movant, represented by Danielle Suzanne Myers , Robbins Geller Rudman & Dowd LLP, Darren J. Robbins , Robbins Geller Rudman & Dowd LLP & Samuel Howard Rudman , Robbins Geller Rudman & Dowd LLP.

LRI Invest S.A., Movant, represented by Ann Kimmel Ritter , Motley Rice LLC, Danielle Suzanne Myers , Robbins Geller Rudman & Dowd LLP, Darren J. Robbins , Robbins Geller Rudman & Dowd LLP, Deborah M. Sturman , Milberg LLP, Salvatore Jo Graziano , Bernstein Litowitz Berger & Grossmann LLP & Samuel Howard Rudman , Robbins Geller Rudman & Dowd LLP.

Paradigm Global Fund I Ltd., Movant, represented by Andrew J Entwistle , Entwistle & Cappucci LLP, Joshua Killion Porter , Entwistle & Cappucci LLP, Marc M. Seltzer , Susman Godfrey, L.L.P. & Merrill G Davidoff , Berger & Montague, P.C.

Paradigm Equities Ltd., Movant, represented by Andrew J Entwistle , Entwistle & Cappucci LLP, Joshua Killion Porter , Entwistle & Cappucci LLP, Marc M. Seltzer , Susman Godfrey, L.L.P. & Merrill G Davidoff , Berger & Montague, P.C.

Paradigm Asia Ltd., Movant, represented by Andrew J Entwistle , Entwistle & Cappucci LLP, Joshua Killion Porter , Entwistle & Cappucci LLP, Marc M. Seltzer , Susman Godfrey, L.L.P. & Merrill G Davidoff , Berger & Montague, P.C.

Zybr Holdings, LLC, Movant, represented by Andrew J Entwistle , Entwistle & Cappucci LLP, Joshua Killion Porter , Entwistle & Cappucci LLP & Marc M. Seltzer , Susman Godfrey, L.L.P..

Augustus International Master Fund, L.P., Movant, represented by Andrew J Entwistle , Entwistle & Cappucci LLP, Joshua Killion Porter , Entwistle & Cappucci LLP & Merrill G Davidoff , Berger & Montague, P.C.

William Schur, Movant, represented by Andrew J Entwistle , Entwistle & Cappucci LLP, Joshua Killion Porter , Entwistle & Cappucci LLP & Marc M. Seltzer , Susman Godfrey, L.L.P..

Robert Marcin, Movant, represented by Merrill G Davidoff , Berger & Montague, P.C.

H. Martin Klinker, Jr., Movant, represented by Imtiaz A. Siddiqui , Cotchett, Pitre & McCarthy LLP.

Rocking K Land and Cattle, Inc., Movant, represented by Imtiaz A. Siddiqui , Cotchett, Pitre & McCarthy LLP.

Philip Timothy Johnson, Movant, represented by Imtiaz A. Siddiqui , Cotchett, Pitre & McCarthy LLP.

Wade Jacobsen, Movant, represented by Imtiaz A. Siddiqui , Cotchett, Pitre & McCarthy LLP.

Ali A. Rangchi Bozorki, Movant, represented by Ali A. Rangchi Bozorki .

Bradley I. Abelow, Defendant, represented by Arthur Harlod Aufses, III , Kramer Levin Naftalis & Frankel, LLP, Craig Louis Siegel , Kramer Levin Naftalis & Frankel, LLP & Paul Henry Schoeman , Kramer Levin Naftalis & Frankel, LLP.

Michael G. Stockman, Defendant, represented by Ethan Yu Lee , Milbank, Tweed, Hadley & McCloy LLP, Justin Anthony Alfano , Milbank, Tweed, Hadley & McCloy LLP, Sean Miles Murphy , Milbank, Tweed, Hadley & McCloy LLP & Thomas A. Arena , Milbank, Tweed, Hadley & McCloy LLP.

U.S. Bancorp Investments, Inc., Defendant, represented by Adam Selim Hakki , Shearman & Sterling LLP, H. Miriam Farber , Shearman & Sterling LLP & Stuart Jay Baskin , Shearman & Sterling LLP.

David Dunne, Defendant, represented by Laura Steinberg , Sullivan & Worcester LLP.

Matthew Hughey, Defendant, represented by David A Geier , Geier Homar & Roy, LLP.

Alison J. Carnwath, Consolidated Defendant, represented by David A. Barrett , Boies, Schiller & Flexner, LLP & Marilyn C. Kunstler , Boies, Schiller & Flexner, LLP.

Bradley I. Abelow, Consolidated Defendant, represented by Arthur Harlod Aufses, III , Kramer Levin Naftalis & Frankel, LLP.

Michael G. Stockman, Consolidated Defendant, represented by Ethan Yu Lee , Milbank, Tweed, Hadley & McCloy LLP.

Bernard Dan, Consolidated Defendant, represented by David Michael Rosenfield , Herrick, Feinstein LLP, Lisamarie Frances Collins , Herrick, Feinstein LLP & Therese Marie Doherty , Herrick, Feinstein LLP.

Bank Of America Corporation, Consolidated Defendant, represented by Christopher Michael Joralemon , Gibson, Dunn & Crutcher, LLP, Mark Adam Kirsch , Gibson, Dunn & Crutcher, LLP & Ladan Fazlollahi Stewart , Gibson, Dunn & Crutcher, LLP.

BMO Capital Markets Corp., Consolidated Defendant, represented by Adam Selim Hakki , Shearman & Sterling LLP, H. Miriam Farber , Shearman & Sterling LLP & Stuart Jay Baskin , Shearman & Sterling LLP.

Commerz Markets LLC, Consolidated Defendant, represented by Adam Selim Hakki , Shearman & Sterling LLP, H. Miriam Farber , Shearman & Sterling LLP & Stuart Jay Baskin ,

Natxis Securities North America, Inc., Consolidated Defendant, represented by Adam Selim Hakki , Shearman & Sterling LLP.

Natxis Securities North America, Inc., Consolidated Defendant, represented by H. Miriam Farber , Shearman & Sterling LLP & Stuart Jay Baskin , Shearman & Sterling LLP.

Lebenthal & Co., LLC, Consolidated Defendant, represented by Adam Selim Hakki , Shearman & Sterling LLP, H. Miriam Farber , Shearman & Sterling LLP & Stuart Jay Baskin , Shearman & Sterling LLP.

Richard W. Gill, Consolidated Defendant, represented by G. Robert Gage, Jr. , Gage, Spencer & Fleming, LLP.

Laurie R. Ferber, Consolidated Defendant, represented by Daniel E. Reynolds , Lankler Siffert & Wohl LLP, Frank H. Wohl , Lankler Siffert & Wohl LLP & Michael Dayton Longyear , Lankler Siffert & Wohl LLP.

Tracey A. Lowery Whille, Consolidated Defendant, represented by G. Robert Gage, Jr. , Gage, Spencer & Fleming, LLP.

Christine A. Serwinski, Consolidated Defendant, represented by Brett Gerald Canna , Robinson McDonald & Canna LLP, Jayne S. Robinson , Robinson McDonald & Canna, LLP & Kathryn Ann McDonald , Robinson McDonald & Canna, LLP.

Frederick R. Demler, Consolidated Defendant, represented by David Michael Rosenfield , Herrick, Feinstein LLP, Lisamarie Frances Collins , Herrick, Feinstein LLP & Therese Marie Doherty , Herrick, Feinstein LLP.

Stephen Grady, Consolidated Defendant, represented by David Michael Rosenfield , Herrick, Feinstein LLP, Lisamarie Frances Collins , Herrick, Feinstein LLP & Therese Marie Doherty , Herrick, Feinstein LLP.

Rick D. Leesley, Consolidated Defendant, represented by David Michael Rosenfield , Herrick, Feinstein LLP, Lisamarie Frances Collins , Herrick, Feinstein LLP & Therese Marie Doherty , Herrick, Feinstein LLP.

David Simons, Consolidated Defendant, represented by G. Robert Gage, Jr. , Gage, Spencer & Fleming, LLP.

Vinay Mahajan, Consolidated Defendant, represented by Gregory John O'Connell , De Feis O'Connell & Rose, P.C., Philip Canning Patterson , De Feis O'Connell & Rose, P.C. & Vera Marie Kachnowski , De Feis O'Connell & Rose, P.C..

Edith O'Brien, Consolidated Defendant, represented by Darren Bernens Kinkead , Williams,Montgomery and John Ltd, Christopher James Barber , Williams,Montgomery and John Ltd & Peter Joseph Meyer , Williams Montgomery & John Ltd..

JP Morgan Chase & Co., Consolidated Defendant, represented by John F Savarese , Wachtell, Lipton, Rosen & Katz, John F. Lynch , Wachtell, Lipton, Rosen & Katz, Ralph M. Levene , Wachtell, Lipton, Rosen & Katz & Steven Peter Winter , Wachtell, Lipton, Rosen & Katz.

Natixis Securities North America Inc., Consolidated Defendant, represented by Adam Selim Hakki , Shearman & Sterling LLP.

MS Global Holdings Ltd., Consolidated Defendant, represented by Daniel A. Nathan , Morrison & Foerster L.L.P..

Arkansas Public Employees Retirement System, ADR Provider, represented by Kenneth Mark Rehns , Cohen Milstein Sellers & Toll P.L.L.C..

Summit Trust Corporation, ADR Provider, represented by Mark Leland Knutson , Finkelstein and Krinsk.

Paul Hamann, ADR Provider, Pro Se.

MF Global Holdings Ltd., as Plan Administrator, Miscellaneous, represented by Bennett Leon Spiegel , Jones Day, Bruce S Bennett , Jones Day & Scott Jason Greenberg , Jones Day.

James W. Giddens, as Trustee for the SIPA Liquidation of MF Global Inc., Interested Party, represented by Charles W. Cohen , Hughes Hubbard & Reed LLP, Christopher K. Kiplok , Hughes Hubbard & Reed LLP, James Benedict Kobak, Jr , Hughes Hubbard & Reed LLP & Sarah Loomis Cave , Hughes Hubbard & Reed LLP.

MEMORANDUM AND ORDER

JAMES C. FRANCIS, IV, Magistrate Judge.

Defendants Bradley Abelow, Jon Corzine, David Dunne, Randy MacDonald, Vinay Mahajan, Edith O'Brien, David P. Bolger, Eileen S. Fusco, David Gelber, Martin J.G. Glynn, Edward L. Goldberg, David I. Schamis, Robert S. Sloan, and Henry Steenkamp (the "Individual Defendants") seek to compel the Litigation Trustee of the MF Global Litigation Trust (the "Litigation Trustee") to search all of the as-yet-unproduced documents of MF Global Inc. and MF Global Holdings Ltd. (collectively, "MF Global") and produce those responsive to the Individual Defendants' First Set of Requests for Production of Documents. The application is granted in part.

Background

This consolidated action concerns events surrounding the collapse of MF Global. The Litigation Trustee is the assignee of the rights and interests of the former Chapter 11 Trustee for MF Global, and has control over all of the company's documents that were in existence at the time of its bankruptcy on October 31, 2011. (Letter of Neil S. Binder dated Dec. 9, 2014 ("Binder 12/9/14 Letter") at 2-3 & n.4). The Litigation Trustee has produced or agreed to produce millions of pages of documents to the Individual Defendants, including documents from thirty-three MF Global custodians who were identified by certain government agencies (the "Government Agencies") in connection with their investigations and by the plaintiffs in the putative securities class action (the "Securities Plaintiffs") that is part of this consolidated case. (Letter of Michael S. McCauley dated Dec. 11, 2014 ("McCauley 12/11/14 Letter") at 3). The Individual Defendants contend that this is insufficient and seek an order compelling the Litigation Trustee to search "all relevant document file systems" of MF Global, including "all shared drives, private shared files, custodial files and hard copy document sources" that might contain material responsive to the requests for production. (Binder 12/9/14 Letter at 5).

Discussion

One of the "guiding principles" behind the rules governing discovery in the Federal Rules of Civil Procedure is that "every party to a litigation is entitled to secure all evidence, information and documents germane to the issues, even if they are in possession of an adverse party." Odum v. Willard Stores, Inc., 1 F.R.D. 680, 681 (D.D.C 1941). However, this principle is subject to limitation. For example, a court may protect a party from discovery that would involve "undue burden or expense." Fed. R. Civ. P. 26(c). Moreover, discovery may be limited where "the burden or expense of the proposed discovery outweighs its likely benefit, considering the needs of the case, the amount in controversy, the parties' resources, the importance of the issues at stake in the action, and the importance of the discovery in resolving the issues." Fed. R. Civ. P. 26(b)(2).

According to the Individual Defendants, the discovery produced by the Litigation Trustee is insufficient because the requests of the Government Agencies and the Securities Plaintiffs are not tailored to the needs of the Individual Defendants in this litigation. (Binder 12/9/14 Letter at 4). Specifically, they complain that the Government Agencies' requests focus on a narrow time period two weeks prior to MF Global's bankruptcy and "are targeted at specific issues relevant to each agency's jurisdiction, generally the segregation of customer funds . . . and earnings releases." (Binder 12/9/14 Letter at 4). Similarly, the Securities Plaintiffs' requests were purportedly crafted to capture only information helpful to their litigating positions in that specific putative class action. (Binder 12/9/14 Letter at 4). The Litigation Trustee, however, points out that it produced documents "not . . . on an issue-by-issue basis, but [] on a custodian-by-custodian basis" from "key officers and employees" of MF Global who were at the center of the transactions that are "the subject of the Litigation Trustee's case, the Securities Plaintiffs' case, and the Government Agencies' investigations." (McCauley 12/11/14 Letter at 3). As to the time period, the Litigation Trustee points out that he has agreed to produce documents from the thirty-three previously-identified custodians for a time period extending from March 1, 2010 (weeks prior to defendant Jon Corzine's employment at MF Global) to the date of the bankruptcy. (McCauley 12/11/14 Letter at 3-4). In their application, the Individual Defendants also identify a "public share location" designated "\Internal Audit\" and two additional custodians — MF Global's Global Head of Internal Audit and its Head of Internal Audit for the Americas — that likely have relevant information. (Binder 12/9/14 Letter at 6). The Litigation Trustee has agreed to produce non-privileged documents from these sources, as well. (McCauley 12/11/14 Letter at 4-5). Thus, the specific deficiencies notes in the Individual Defendants' application have been remedied. Nonetheless, they continue to press for further review and production of documents. (Letter of Neil S. Binder dated Dec. 15, 2014).

The Litigation Trustee contends that the Individual Defendants' requested relief would be unduly burdensome and disproportionate to the likely benefit of the discovery. It argues that "[p]rocessing, reviewing, and producing this unprocessed data" is a "practical impossibility given the circumstances surrounding the liquidating estate, the amount of data, and how the data is stored." (McCauley 12/11/14 Letter at 1). As the Litigation Trustee explains, the cost would be prohibitive. During the meet and confer process, the Individual Defendants identified twenty-four additional MF Global custodians whose documents they sought. (Letter of Michael C. Schneidereit dated Nov. 25, 2014 ("Schneidereit 11/25/14 Letter"), attached as Exh A to McCauley 12/11/14 Letter, at 2). Merely processing these additional documents — which is a much smaller universe than the dozens of terabytes of information that this application asks the Litigation Trustee to review (McCauley 12/11/15 Letter at 5) — would cost over $300,000; review and production would multiply that amount and require months of work. (Schneidereit 11/25/14 Letter at 2). Indeed, most of MF Global's documents "reside on servers for which the Litigation Trustee does not have direct access," so merely retrieving them is "a time-consuming and costly process."1 (McCauley 12/11/14 Letter at 5; Schneidereit 11/25/14 Letter at 3). And, with the exceptions addressed above with regard to time period and internal auditing, the Individual Defendants have not articulated with any specificity why, in light of the information already obtained, the requested discovery is particularly important.

Well before this application, the Litigation Trustee suggested an appropriate compromise. (Schneidereit 11/25/14 Letter at 2-3 (Individual Defendants invited to identify additional custodians in July 2014 and additional public share drive folders in November 2014)). Within fourteen days of the date of this Order, the parties shall meet and confer to agree on a reasonable list of additional custodians — no more than six — whose files shall be produced. In addition, they shall confer to identify a reasonable subset of file systems likely to contain relevant documents,2 which the Litigation Trustee shall produce. This resolves Docket no. 798 in Case no. 11 Civ. 7866.

SO ORDERED.

FootNotes

1. The Individual Defendants indicate that the cost involved in producing these document is irrelevant (Binder 12/9/14 Letter at 5), citing a case that states that a bankruptcy trustee must weigh the costs and benefits of a potential action before investigating and filing it, because "bringing a lawsuit which would cost the []estate fees and costs, when no recovery could result, would be a breach of the trustee's duties." In re Bean, 251 B.R. 195, 205 (E.D.N.Y. 2000) (alteration in original) (internal quotation marks omitted). While that may be true, I am not passing on whether the Litigation Trustee has faithfully fulfilled his duties; this is a discovery dispute, and the rules clearly allow the expense of discovery to be taken into account. Fed. R. Civ. P. 26(b)(2). Indeed, it is perhaps particularly appropriate in this litigation, where the Court has been keenly aware of the potential for outsized litigation costs and has attempted to impose efficiencies to limit those costs. (E.g., Transcript of Hearing dated Aug. 27, 2012).

2. Although I am not setting an outer limit on the number of file systems to be agreed upon, I caution the Individual Defendants that the number they previously identified, which included nearly 2000 gigabytes of information (Schneidereit 11/25/14 Letter at 3), is well beyond the realm of reasonableness.

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