Grubman Loses To Investors in Arbitration

Law360, New York (October 6, 2005, 12:00 AM EDT) -- Former Salomon Smith Barney telecom analyst Jack Grubman and Citigroup, Inc. have been ordered to pay $2.41 million to a Boston couple who claimed they lost all their money after investing in WorldCom stock upon Grubman’s advice.

Joseph and Beverly Salerno said they invested around $1.12 million in WorldCom stock between 1998 and 2000 after receiving encouraging recommendations from Grubman.

The couple said that despite declining value, they did not sell the stock because Grubman continued to be enthusiastic about the company’s future.

The $2.41 million,...
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