Citigroup Asks 2nd Circ. To Kill Opt-Out Securities Suits

Law360, New York (December 5, 2012, 7:15 PM EST) -- Citigroup Inc. on Wednesday asked the Second Circuit to stop European financial institutions from opting out of a class action and suing it over financial crisis-linked writedowns, arguing that federal securities laws bar the new suits.

A three-year statute of repose in the Securities Act stops banks from bringing their own claims, a lawyer for Citigroup said at oral arguments before a three-judge panel in Manhattan.

The financial institutions challenging Citigroup are among dozens that have claimed the bank misled investors about the risk of its...
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