Mutual Fund Sues Citi Over Bankrupt Vegas Monorail Bonds

Law360, New York (September 27, 2011, 8:25 PM EDT) -- A mutual fund on Tuesday hit Citigroup Global Markets Inc. with a lawsuit in New Jersey federal court over the bank's alleged failure to disclose information that would have discouraged it from purchasing bonds for the doomed Las Vegas monorail.

According to Lord Abbett Municipal Income Fund Inc.'s complaint, the New Jersey-based fund purchased $13 million in second-tier municipal bonds from Citigroup in 2006 for the monorail project based on projections from the project developer, the Las Vegas Monorail Co., and a report from the company's...
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