Citigroup Directors Escape CDO Derivative Suit

Law360, New York (May 18, 2012, 4:23 PM EDT) -- A New York state judge on Friday dismissed a Citigroup shareholder's suit against its directors claiming the company's mismanagement resulted in a write-down of its subprime-related assets of around $8 billion to $11 billion in 2007, saying the company's board had already investigated the matter.

Shareholder Stanley Lerner alleged that the board had conducted a sham investigation when he demanded those responsible for the write-downs be sued, but Judge Bernard J. Fried said Lerner had failed to plead that the investigation was inadequate.

“Plaintiff fails to...
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