Calif. Court Says Citigroup Can Arbitrate Investor Suit

Law360, San Diego (June 22, 2012, 8:25 PM EDT) -- A California appeals court on Thursday allowed Citigroup Global Markets Inc. to compel arbitration of two investors' negligent misrepresentation suit, finding that the brokerage firm was able to show the parties had agreed to arbitration.

In overturning a lower court's ruling, the Second District Court of Appeal determined that Citigroup’s account application incorporated a client agreement by reference, and together, they constituted prima facie proof of an arbitration deal.

Investors Carlos and Theodora Rodriguez sued Citigroup and one of its employees after losing more than $100,000...
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