2nd Circ. Cold On Revival Of Citigroup ARS Action

Law360, New York (March 16, 2012, 8:08 PM EDT) -- The Second Circuit on Friday expressed doubt that it would revive a class action alleging Citigroup Inc. manipulated the market for its auction rate securities, saying the bank had made it clear it would intervene.

A panel of three judges repeatedly questioned ARS investors, whose securities fraud suit was dismissed in March 2011, on how they could claim Citigroup secretly manipulated the now-failed market when the bank made it clear that it often entered that market to prop up auctions.

“I don't understand how an investor...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.