A judge has dismissed a derivative lawsuit against Citigroup, its executives and its directors over the bank’s involvement in the auction-rate securities market. District Judge Laura Taylor Swain dismissed the lawsuit, saying in part that the Louisiana Municipal Police Employees Retirement failed to make a demand on the company’s board prior to bringing the lawsuit, reports Dow Jones. However, the judge gave the retirement system an opportunity to file an amended complaint by Oct. 1. The Louisiana retirement system had sued on behalf of Citigroup, claiming the company’s executives and directors engaged in a scheme to manipulate the auction-rate securities market that has cost the company tens of billions of dollars and has permanently tarnished the company’s reputation. The system provides retirement benefits for municipal police officers and employees in Louisiana.
Judge Dismisses Citigroup Derivative ARS Lawsuit
The judge ruled that Louisiana Municipal Police Employees Retirement failed to make a demand on the company’s board prior to bringing the lawsuit.
September 11, 2009