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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: M0NEYMADE who wrote (86673)	5/10/2004 9:23:52 AM
From: scion	Respond to of 122087

Citigroup Sets $4.95 Billion Charge To Settle Worldcom-Related Suit DOW JONES NEWSWIRES May 10, 2004 8:23 a.m. NEW YORK -- Citigroup Inc. agreed to settle a class-action lawsuit with investors of WorldCom Inc., a move that will lead it to take a second-quarter charge of $4.95 billion, or 95 cents a share. The banking giant also said it would also increase its litigation reserves. The company said that pretax reserves for its remaining exposure to other legal cases, including those related to Enron, were now $6.7 billion. The WorldCom suit focused on Citigroup's Salomon Smith Barney unit and its star telecommunications analyst Jack Grubman, who was known for touting WorldCom stock until days before the telecom company collapsed in an accounting fraud. The suit's lead plaintiff was New York State Comptroller Alan Hevesi, who is also a trustee of the New York State Common Retirement Fund. The suit alleged, among other things, that Citigroup and Salomon granted WorldCom Chief Executive Bernard Ebbers large loans and access to stock offerings in exchange for investments banking business. Citigroup and Mr. Grubman, as well as other defendants in the suit, have denied the accusations.