Krys v. Aaron

OPINION

SIMANDLE, Chief Judge:

I. INTRODUCTION

This lengthy multi-district securities litigation generally arises from the complex financial and brokerage relationships between, and ultimate bankruptcy proceedings of, three entities (and the multitude of affiliates associated with each): PlusFunds Group, Inc. (hereinafter, “PlusFunds”), SPhinX Funds (hereinafter, “SPhinX”), and Refco, Inc. (hereinafter, “Refco”).

As relevant here, following the revelation that several of Refco’s officers and directors participated in a wide-scale, fraudulent underreporting of corporate liabilities, Refco filed…