Citigroup Prevails In $900M Suit Over Grubman Stock Tip

Law360, New York (December 8, 2005, 12:00 AM EST) -- Citigroup has dodged a $900 million bullet after a National Association of Securities Dealers panel rejected an investor’s complaint over losses incurred as a result of analyst Jack Grubman’s zeal for WorldCom stock.

The case, which was dismissed in arbitration, was one of the largest ever filed against an investment bank.

The complaint was filed by Donald Sturm, who was once named to Forbes’ list of the 400 wealthy Americans.

Sturm claimed that Grubman had relied on flawed research when recommending he not sell the stock....
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