Citigroup Faces Fraud Suit Over Employee Stock Plan

Law360, New York (August 20, 2009, 2:10 PM EDT) -- Two former employees of Citigroup Inc. have filed a putative class action alleging the financial services giant and its board of directors misrepresented the health of the company to workers who participated in a stock purchase program.

Paul Koch and Mark Oelfke filed suit Wednesday in the U.S. District Court for the Southern District of California against Citigroup, its former Smith Barney brokerage division and its current board of directors, seeking an unspecified amount of damages.

The plaintiffs, who both worked for Citigroup in Minnesota, claimed...
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