KV Targets Citigroup Over $72M In Illiquid ARS

Law360, New York (February 25, 2009, 12:00 AM EST) -- KV Pharmaceutical Co. has targeted Citigroup Global Markets Inc. with a suit that accuses the bank of inducing the drug manufacturer to invest in auction rate securities and leaving it in the lurch with $72 million in now-illiquid ARS.

St. Louis, Mo.-based KV lodged its suit Wednesday in the U.S. District Court for the Eastern District of Missouri, alleging that Citibank lied to KV that ARS were safe and liquid investments and glossed over the investment risks.

KV claims that, as a direct result of Citigroup’s...
To view the full article, register now.