Citigroup Sold ARS After Market Collapsed: Suit

Law360, New York (April 16, 2009, 12:00 AM EDT) -- The brokerage division of Citigroup Inc. has been hit with a $30 million lawsuit by a specialty pharmaceutical company alleging that the firm sold it auction rate securities after the market collapsed and just a day before settling charges with federal regulators over the toxic financial instruments.

Braintree Laboratories Inc. filed a complaint against Citigroup Global Markets Inc. and its Citi Smith Barney division in the U.S. District Court for the District of Massachusetts on Thursday, accusing the bank of misrepresenting the securities and destroying evidence...
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