Misconduct Alleged In $900M Citigroup Arbitration

Law360, New York (February 23, 2006, 12:00 AM EST) -- Reeling from a $900 million securities arbitration loss against Citigroup, a major WorldCom shareholder has asked a federal court to overturn the National Association of Securities Dealers’ previous decision, citing an arbitrator’s alleged conflicts of interest.

Donald Sturm, a wealthy Colorado businessman, filed the lawsuit on Tuesday in federal district court in Denver, charging arbitrator David Drennen with withholding critical information that would have barred him from sitting on the NASD panel, if revealed.

NASD arbitrators are required to divulge all real and potential conflicts before...
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