Citigroup Sued For Failing To Repay $120M In ARS

Law360, New York (March 10, 2009, 12:00 AM EDT) -- Citigroup Global Markets Inc. has been hit with a lawsuit from two financial firms that claim the bank left them stranded with more than $120 million in illiquid auction rate securities and then failed to make good on its settlement with state regulators, under which it was to provide liquidity solutions to institutional investors.

Ocwen Financial Corp. and Bankruptcy Management Solutions Inc. filed the complaint against Citigroup on Monday in the U.S. District Court for the Southern District of Florida, claiming that their ARS losses could...
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