classaction lawsuit versus Citigroup (over Enron disclosure)
Kaplan Fox Seeks To Recover Losses For Investors Who Purchased Citigroup, Inc. Common Stock
NEW YORK, NY--(INTERNET WIRE)--Aug 1, 2002 -- Kaplan Fox (kaplanfox.com) has filed a class action suit against Citigroup, Inc. ("Citigroup") and its Chairman and CEO, Sanford I. Weill, (NYSE:C - news), in the United States District Court for the Southern District of New York. This suit is brought on behalf of all persons or entities who purchased or otherwise acquired Citigroup common stock between July 24, 1999 and July 23, 2002, inclusive (the "Class Period").
The complaint alleges that Citigroup and Sanford I. Weill violated the federal securities laws. Specifically, the complaint alleges, that during the Class Period defendants failed to disclose material facts concerning Citigroup's relationship with Enron Corp. ("Enron"). Citigroup never disclosed that it was structuring financing deals for Enron so that Enron could falsify its financial statements and defraud its investors. After Enron's collapse, Citigroup continued to misrepresent its potential Enron-related exposure by failing to disclose the true extent of its potential legal liability arising out of its finance transactions with Enron.
As a result of defendants' failure to disclose the true nature of Citigroup's relationship with Enron, Citigroup's stock price was artificially inflated during the Class Period trading as high as $57. Upon news that the Senate Committee found evidence that Citigroup was involved in Enron's collapse, the stock fell to $27 on trading of 121 million shares.
Plaintiff seeks to recover damages on behalf of the Class and is represented by Kaplan Fox & Kilsheimer LLP. Our firm, with offices in New York, San Francisco, Chicago and New Jersey, has many years of experience prosecuting investor class actions and actions involving financial fraud. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com |
