Citigroup Gets NY Real Estate Mogul's Suit Stamped Out

Law360, New York (May 18, 2012, 10:49 PM EDT) -- A New York federal judge on Friday tossed real estate mogul Sheldon H. Solow's suit claiming Citigroup Inc. hid its recession-related financial troubles from investors, finding Solow hadn't shown how Citigroup’s alleged misstatements had led to investor losses.

U.S. District Judge Robert W. Sweet granted Citigroup’s motion to dismiss the suit, saying Solow hadn't adequately shown how stock losses had resulted because of a risk that had surfaced that the bank allegedly tried to conceal. He tossed Solow’s second amended complaint with prejudice.

“Notwithstanding the [second...
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