2nd Circ. Cold On Revival Of Citigroup ARS Action

Law360, New York (March 16, 2012, 8:08 PM EDT) -- The Second Circuit on Friday expressed doubt that it would revive a class action alleging Citigroup Inc. manipulated the market for its auction rate securities, saying the bank had made it clear it would intervene.

A panel of three judges repeatedly questioned ARS investors, whose securities fraud suit was dismissed in March 2011, on how they could claim Citigroup secretly manipulated the now-failed market when the bank made it clear that it often entered that market to prop up auctions.

“I don't understand how an investor...
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