Citigroup Faces New ERISA Suit Over Stock Drop

Law360, New York (November 1, 2011, 7:41 PM EDT) -- Citigroup Inc. was hit Friday with a suit claiming its stock was an imprudent investment option for its retirement plans, less than two weeks after the Second Circuit affirmed the dismissal of a similar class action against the company.

The Second Circuit ruled Oct. 19 that the plaintiffs in the earlier Employee Retirement Income Security Act suit failed to allege that Citigroup was in the sort of "dire situation" during the financial crisis that obligated the company to bar employees from investing in Citigroup stock as...
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