RMBS Suit Against Citigroup Tossed By NY Judge

Law360, Los Angeles (October 30, 2013, 6:09 PM EDT) -- A New York federal judge on Wednesday threw out a lawsuit brought against Citigroup Inc. for negligent misrepresentation and fraud by shareholders who claim the bank issued misleading statements regarding residential mortgage-backed securities, holding the plaintiffs failed to allege cognizable damages.

The plaintiffs filed suit in 2010, alleging they had planned to sell 16.6 million shares of Citigroup stock in May 2007 but instead held the stock until March 2009 — when its price fell by 95 percent — because they relied on defendants’ alleged misrepresentations...
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