Citigroup Sues Impac Over Botched SEC Filing

Law360, New York (May 31, 2011, 4:22 PM EDT) -- Citigroup Global Markets Inc. claimed last week that California-based Impac Funding Corp. tricked it into sinking more than $7 million into a mortgage-backed securities trust and then, "out of the blue," changed the trust's distribution terms, causing Citigroup's investment to tank.

In a complaint filed May 25, Citigroup said it bought $7.3 million worth of certificates in the trust on the basis that its investment would pay out before other certificates. But just weeks after Citigroup made its purchase last year, Impac filed a statement with...
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