American Eagle Gets Do-Over In $258M Citi ARS Suit

Law360, New York (April 28, 2010, 12:58 PM EDT) -- Citing the U.S. Supreme Court's decision in Merck & Co. Inc. v. Reynolds, a federal judge has ruled that American Eagle Outfitters Inc. can refile a lawsuit accusing Citigroup Global Markets Inc. of fraudulently inducing it to buy hundreds of millions of dollars in now-illiquid auction rate securities.

In an unusual move Tuesday, Judge Laura Taylor Swain of the U.S. District Court for the Southern District of New York denied without prejudice Citigroup's motion to dismiss the retailer's suit, saying “the interests of justice will best...
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