MF Global employees fired after the broker's epic collapse will appeal a court ruling dismissing their allegations that they were not given proper notice of their terminations.
In papers filed on Friday in U.S. Bankruptcy Court in Manhattan, the employees said they would appeal Judge Martin Glenn's Aug. 23 decision.
More than 1,000 workers were axed when the commodities broker, run by former New Jersey Governor Jon Corzine, filed a $40 billion bankruptcy on Oct. 31, 2011. In a class action, the employees said they should have been given notice under the Worker Adjustment and Retraining Notification (WARN) Act, which requires employers to give notice of mass layoffs.
Judge Glenn twice rejected the lawsuit - once in October of 2012 and again last month - after giving the plaintiffs a chance to amend their case.
In his latest ruling, Glenn said MF Global's broker-dealer unit, which employed the workers, was shut down not by the MF parent, but by the Securities Investor Protection Corp, which insures customers of failed brokers. The workers thus cannot hold MF Global liable for the decision, Glenn said.
MF Global became a political firestorm after regulators discovered that the firm had improperly used customer cash to cover liquidity gaps. Corzine and other directors face civil lawsuits, but have not faced criminal charges.