One Claim In Citigroup Subprime Losses Suit Lives On

Law360, New York (February 26, 2009, 12:00 AM EST) -- The Delaware Court of Chancery has thrown out all but one of the claims in a derivative suit accusing Citigroup Inc.'s board of directors of breaching its fiduciary duty by mismanaging the risks of the subprime lending market. The ruling is the first in Delaware to examine director and officer liability in a subprime case.

Chancellor William B. Chandler III ruled on Tuesday that the plaintiffs had failed to adequately plead a case. Under Delaware chancery rules, shareholders in a derivative suit must show that asking...
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