Judge Tosses ARS Class Action Against Citigroup

Law360, New York (March 2, 2011, 2:27 PM EST) -- A New York federal judge Tuesday nixed a consolidated putative class action accusing Citigroup Inc. of manipulating the market for its auction rate securities.

Judge Laura Taylor Swain of the U.S. District Court for the Southern District of New York dismissed all claims against Citigroup and its subsidiaries brought by a proposed class of investors who effectively lost their investments when the ARS markets became illiquid.

The plaintiffs sought to bring claims under the Securities and Exchange Act of 1934, the Investment Advisers Act of 1940...
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