INTL FCStone 2011 Annual Report Download - page 38

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INTL FCSTONE INC.Form10K24
PARTI
ITEM 4 [Removed and Reserved]
Sentinel Litigation
In August2008, the bankruptcy trustee of Sentinel Management
Group,Inc. (“Sentinel”) led adversary proceedings against one
of the Company’s subsidiaries, FCStone,LLC, and a number of
other FCMs in the Bankruptcy Court, subsequently reassigned
within the UnitedStates District Court, for the Northern
District of Illinois seeking avoidance of alleged transfers or
withdrawals of funds received by the Company and other FCMs
within 90days prior to the ling of the Sentinel bankruptcy
petition, as well as avoidance of post-petition distributions and
disallowance of the proof of claim led by FCStone,LLC. e
trustee seeks recovery of pre- and post-petition transfers totaling
approximately $15.5million and, in April2009, fi led an amended
complaint adding a claim for unjust enrichment. FCStone,LLC
answered the complaints and all parties entered into the discovery
phase of the litigation. On January 21,2011 the bankruptcy
trustee of Sentinel fi led a motion for summary judgment against
FCStone,LLC on various counts in the adversary proceedings
fi led in August2008 against FCStone,LLC and a number of
other FCMs. e motion has since been fully briefed, and is
pending before the court awaiting decision. FCStone,LLC
intends to defend the matter vigorously, and to coordinate its
defense with the other FCMs.
ITEM 4 [Removed and Reserved]