Ex-Citi Unit Student Loan Corp. Dodges Investor Action

Law360, New York (June 26, 2013, 4:13 PM EDT) -- A New York federal court on Tuesday threw out a putative class action alleging Student Loan Corp., a former Citibank NA subsidiary, misled investors about its reserves for potential loan losses in the wake of the financial crisis, ruling the claims were barred by an earlier legal settlement.

U.S. District Judge Naomi Reice Buchwald dismissed the suit against SLC, three of its former executives, Citi and Discover Financial Services, which purchased SLC from Citi in December 2010. The plaintiffs, SLC shareholders, claimed the company failed to...
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