Citi Unit To Pay LandAmerica Trustee $96M In ARS Deal

Law360, New York (October 28, 2010, 11:45 AM EDT) -- A Citigroup Inc. subsidiary has agreed to pay the trustee overseeing the liquidation of a unit of LandAmerica Financial Group Inc. $95.5 million to settle claims regarding the alleged fraudulent sale of auction rate securities.

In a motion filed Wednesday in the U.S. Bankruptcy Court for the Eastern District of Virginia, Gerard A. McHale Jr., the trustee for the LandAmerica 1031 Exchange Services Inc. Liquidation Trust, said the settlement should be approved because the percentage recovery is comparable to the recovery private litigants have received in...
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