Citigroup Faces Class Action Over Fannie Offering

Law360, New York (November 4, 2008, 12:00 AM EST) -- Citigroup Global Markets Inc. division Smith Barney is facing a putative class action from stock purchasers in Florida who claim the bank misrepresented the security of Fannie Mae stocks, which plunged from $25 to $1.80 a share following the government's seizure of the mortgage corporation.

Lead plaintiff Hilda Gordon filed an amended complaint on Monday in the U.S. District Court for the Southern District of Florida, swapping allegations of violations of the state securities law for claims under the federal Securities Act following the suit's removal...
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