Citigroup Argues KV Pharma Knew ARS Risks

Law360, New York (August 25, 2009, 3:57 PM EDT) -- Citigroup Global Markets Inc. has urged a court to toss a suit brought by KV Pharmaceutical Co. in the wake of the auction rate securities fiasco, saying the drugmaker cannot use the legal system as insurance against a bad investment.

In a motion to dismiss filed Monday in the U.S. District Court for the Southern District of New York, the brokerage arm of Citigroup Inc. said KV was a sophisticated investor that could not “credibly argue that it was oblivious” to the risks of ARS....
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