A group of well-known financial institutions have reached a deal to settle a class-action lawsuit brought by former MF Global Holdings Ltd. investors for $29.825 million.

In a Friday filing with the U.S. District Court in Manhattan, lawyers for the plaintiffs said the settlement with financial institutions that served as underwriters—among them Jefferies LLC, BMO Capital Markets Corp., Natixis Securities Americas LLC, Lebenthal & Co. and U.S. Bancorp Investments Inc.—for the sale of MF Global's bonds before its collapse "dismisses and releases" all claims against them in the suit.

The investors, now led by the Virginia Retirement System, sued the financial institutions as part of a larger 2011 suit against former MF Global Chief Executive Jon S. Corzine and other company executives, accusing the parties of not disclosing the risks associated with MF Global's European sovereign debt trades using repurchase-to-maturity transactions.

The proposed underwriter settlement follows an earlier $74.9 million deal with a separate group of underwriters. Another $64.5 million settlement resolved investors' claims against Mr. Corzine, ex-finance chief Henri Steenkamp and several other former MF Global directors. In a fourth deal, accounting firm PricewaterhouseCoopers agreed to pay $65 million to settle investors' claims. In all, the settlements will bring in more than $235 million to the investors.

A judge must approve the settlement for it to take effect. The plaintiffs are asking for preliminary approval of the pact quickly, with a final approval later.

MF Global imploded more than four years ago as investors fled the firm after its bets on European sovereign debt came to light. The exodus created what was believed to be a $1.6 billion shortfall in customer accounts that should have been segregated from MF Global's money pool.

The shortfall has since been recovered and brokerage customers of MF Global, with funds recovered by Securities Investor Protection Act litigation, are set to receive roughly 95 cents on the dollar.

The U.S. Commodity Futures Trading Commission is pursuing a civil suit against Mr. Corzine. The former Goldman Sachs Group Inc. chairman and ex-New Jersey's governor has denied wrongdoing.

Write to Patrick Fitzgerald at patrick.fitzgerald@wsj.com

(END) Dow Jones Newswires

March 14, 2016 11:45 ET (15:45 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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