Corporate & Securities Law

New York Attorney General Cuomo announced today a landmark settlement with Citigroup to recover billions in auction-rate securities for investors nationwide.

According to the press release issued today, Citigroup has agreed to buy back, no later than November 5, 2008, all illiquid auction-rate securities from all retail customers, charities, and small to mid-sized businesses.  Citigroup will:

• fully reimburse all retail investors who sold their auction rate securities at a discount after the market failed;
• consent to a special, public arbitration process to resolve claims of consequential damages suffered by retail investors as a result of not being able to access their funds;
• undertake to expeditiously provide liquidity solutions to all other institutional investors; and
• reimburse all refinancing fees to any New York State municipal issuer who issued auction rate securities through Citigroup since August 1, 2007.

Our securities attorneys stand ready to assist Citigroup retail investors to recover their ARS losses through the special arbitration process noted in the release.  Please contact me at JEccleston@snsfe-law.com or 312.621.4400 for more information.

Read press release.