Investors Say CIT Lied About Risks

Law360, New York (July 20, 2009, 5:44 PM EDT) -- Cash-strapped CIT Group Inc. — which is currently embroiled in a struggle to avoid filing for bankruptcy — is also facing allegations that it failed to disclose risks associated with its subprime home lending and private student lending businesses, causing shareholders to suffer “hundreds of millions of dollars” in damages.

The claims came in a consolidated complaint filed Thursday in the U.S. District Court for the Southern District of New York by a Netherlands-based pension fund, Pensioenfonds Horeca & Catering, which was recently appointed the lead...
To view the full article, register now.