Cuomo May Sue Citigroup Over ARS

Law360, New York (August 4, 2008, 12:00 AM EDT) -- If New York Attorney General Andrew Cuomo has his way, Citigroup Inc. may be the next investment bank to be hit with an auction rate securities fraud suit.

Cuomo said on Friday that he is prepared to file a suit accusing the bank of aggressively marketing risky auction rate securities to unsuspecting investors. Cuomo also said he may charge Citigroup with the destruction of documents.

Cuomo's possible lawsuit comes in addition to a probe by the U.S. Securities and Exchange Commission, which has opened an investigation...
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