Vinny’s Blog

I thought there is only one law suit against Citi. But when I checked again and read these article again…guess what I find…looks like there are 2 different law suits….

One for pension and one for 401K.

-Following one suggests that it’s for pension.

According to Marian Rosner, who represents the Plaintiff, “Citigroup’s employees have their retirement plans in turmoil as Citigroup continued to acquire huge amounts of company stock for the plans even as it gambled with high-risk business practices. The employees now pay the price as the company struggles to come to grips with its exposure to the subprime market and the enormous undisclosed contingent liabilities with respect to off-balance sheet transactions.”

Click here to read

Now, this one suggests that it could be about 401k and about company stock in 401k plans…

On November 4, 2007, Citigroup announced significant declines in the fair value of $55 billion in the U.S. subprime debt exposure - a revenue decline related to these declines of $8 to $11 billion. Later that day, Citigroup announced the resignation of its then-current Chief Executive Officer (”CEO”) and Chairman of the Board of Directors of Citigroup. On this news, Citigroup’s stock collapsed to open at $36.00 per share on November 5, 2007, a decline of 5%, from November 2, 2007, and a decline of 25% from October 12, 2007.Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Citigroup common stock during the Class Period, which is between April 17, 2006 and November 2, 2007. If you purchased or otherwise acquired Citigroup common stock during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased Citigroup common stock during the Class Period, you may request that the Court appoint you as lead plaintiff no later than 60 days from November 8, 2007.

Full article is here…

http://www.ssbla.com/filedcases/citigroup.html

If you actually want to see case documents that have been filed in the court to see exact definition of the law suit check the link below. It’s a PDF file that will open in another window. Simply go to page 2 point number 4. Or read the whole document if you have time. This one suggests lawsuit about keeping Citi stock in 401K

http://www.erisaclassactionwatch.com/wp-content/uploads/2007/11/gray-et-al-v-citigroup.pdf

And just when you think you have read all the documents here is more to read . This one suggests that Citi engaged it’s own subsidiaries to manage 401K plans offered by the company and gave preference to their interest first…Here is the exact definition of the law suit…..

http://www.erisaclassactionwatch.com/wp-content/uploads/2007/10/leber-v-citigroup-complaint.pdf

If you find something on this topic please post your comments to it..so all of us can keep ourselves up-to-date with it.