Citigroup Units Cut Loose From Investor Fee Suit

Law360, New York (August 15, 2012, 6:34 PM EDT) -- A New York federal judge on Wednesday dropped Citigroup Inc. units from an investor class action accusing them of pocketing fees for mutual funds they managed, saying the plaintiffs' Securities Exchange Act claims didn't meet heightened pleading standards established in recent U.S. Supreme Court decisions.

U.S. District Judge William H. Pauley III said investment advisers Smith Barney Asset Management LLC and Citigroup Global Markets Inc., formerly divisions of Citigroup Asset Management, as well as two former executives, couldn't be held liable for Securities Exchange Act claims...
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