2nd Circ. Nixes Legg Mason, Citi Securities Action

Law360, New York (October 1, 2009, 1:07 PM EDT) -- A federal appeals court has affirmed a district court's dismissal of a putative securities class action alleging that Legg Mason Inc. and Citigroup Inc. defrauded investors by omitting details of a secondary public offering following a multibillion-dollar unit swap in 2005.

The U.S. Court of Appeals for the Second Circuit on Wednesday ruled that the plaintiffs' arguments were without merit, because the information they alleged the companies had withheld was already in the public domain and so could not count as material omissions.

The case, which...
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