PwC Settles $3B Lawsuit With MF Global Over Collapse

A Manhattan federal jury has been robbed of its chance to decide whether the collapse of financial firm MF Global was the fault of its CEO Jon Corzine or his accounting firm.

MF Global, which was seeking to pin the blame for the firm’s stunning 2011 demise on PriceWaterHouseCoopers, settled the case mid-trial, sources said.

The parties reached an agreement on Wednesday and notified the judge Thursday morning, a source said. The terms of the settlement were not disclosed.

MF Global took PwC to trial in an effort to prove it was responsible for the $2 billion firm’s epic collapse because it approved of “risky accounting” methods that kept billions of dollars in dubious bond bets off the books.

Corzine, who ran the firm after losing the NJ’s governor’s mansion to Chris Christie, took the stand in the case — marking his first public appearance on the matter since he testified before Congress about MF Global’s bankruptcy in 2011.

Corzine said MF Global’s bankruptcy had nothing to do with $6.3 billion in European bonds investments he approved of, which spooked investors leading up to the firm’s collapse.

“I thought they were relatively low risk,” the former Goldman Sachs chief insisted.

The company’s spectacular downfall — and revelations that more than $1.6 billion in customers’ funds had gone missing in the process — proved a drag on Corzine’s illustrious four-decade career.

The former US Senator agreed earlier this year to pay a $5 million penalty over the improper use of customers funds as MF Global struggled to stay afloat. He also agreed to a lifetime ban from leading another futures brokerage or registering with the Commodity Futures Trading Commission.

A spokesman for Corzine declined to comment.