Investors Win Class Cert. In Smith Barney Kickback Suit

Law360, Los Angeles (March 21, 2013, 6:48 PM EDT) -- A New York federal judge on Wednesday certified a class of shareholders accusing a Smith Barney Fund Management LLC executive of deceiving the public about a kickback scheme with Citigroup Inc. that harmed investors and violated securities law.

U.S. District Judge William Pauley found the plaintiffs had met certification requirements in their suit claiming Smith Barney failed to notify investors that it had siphoned savings from its mutual funds to Citigroup after negotiating a reduction in transfer agency fees with its stock transfer agent, First Data...
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