2nd Circ. Kills Real Estate Mogul's Citigroup Stock Suit

Law360, New York (January 15, 2013, 1:22 PM EST) -- The Second Circuit declined Tuesday to revive real estate magnate Sheldon H. Solow's securities fraud suit against Citigroup Inc., ruling the bank did not cause him to lose money on stock holdings by touting its financial health before the 2008 market meltdown.

Citigroup did not mislead Solow when it claimed before the 2008 crisis that it was well-capitalized, a three-judge panel said, because the bank met the regulatory definition of that term at the time. The decision affirmed a New York federal judge’s May 18 ruling...
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