We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Citigroup Prevails In $900M Suit Over Grubman Stock Tip

Law360 (December 8, 2005, 12:00 AM EST) -- Citigroup has dodged a $900 million bullet after a National Association of Securities Dealers panel rejected an investor’s complaint over losses incurred as a result of analyst Jack Grubman’s zeal for WorldCom stock.

The case, which was dismissed in arbitration, was one of the largest ever filed against an investment bank.

The complaint was filed by Donald Sturm, who was once named to Forbes’ list of the 400 wealthy Americans.

Sturm claimed that Grubman had relied on flawed research when recommending he not sell the stock....
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.