Citi Subprime Class Action Barely Survives Toss

Law360, New York (April 8, 2010, 2:01 PM EDT) -- A federal judge has thrown out most of a class action accusing a Citigroup Inc. unit of making false statements when it issued mortgage-backed securities, but the judge has allowed the plaintiffs to amend part of their complaint.

Judge Leonard D. Wexler of the U.S. District Court for the Eastern District of New York ruled Tuesday that a pension fund largely lacked standing to sue Citigroup Mortgage Loan Inc. because it did not buy mortgage-backed securities from all 18 Citigroup mortgage loan trusts identified in the...
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