2nd Circ. Nixes Norwegian Investors' Citigroup Fraud Suit

Law360, New York (December 7, 2011, 8:57 PM EST) -- Norwegian investors should have done more research before buying securities offered by Citigroup Inc., the Second Circuit said Wednesday, upholding a lower court’s dismissal of a securities fraud suit against the company.

The court said the plaintiffs — including a Norwegian bank, two insurance subsidiaries and a successor to a brokerage firm — were sophisticated investors who should have been more diligent in researching their actions, echoing a New York federal court's decision months earlier.

“[The plaintiffs] have not alleged that they conducted any independent investigation...
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