|  | | 2008 News and Press Releases | | |
SETTLEMENT NEWS:
CITIGROUP GLOBAL: Court Gives Final OK to Global Crossing Deal
Staff Writer
Class Action Reporter. May 5, 2008
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EXCERPT: The U.S. District Court for the Southern District of New York granted final approval to the settlement of a class action suit filed against Citigroup Global Markets Inc.; Citigroup, Inc.; and Citigroup Global Market Holdings, Inc., styled, "In Re: Global Crossing, Ltd. Securities Litigation." The suit also named as defendants certain of Global Crossing's officers and current and former employees. The consolidated complaint was filed on behalf of purchasers of the securities of Global Crossing and Asia Global Crossing (Class Action Reporter, Oct. 6, 2005). The purported class action complaint asserted claims under the federal securities laws alleging that the defendants issued research reports without a reasonable basis in fact and failed to disclose conflicts of interest with Global Crossing in connection with published investment research. On March 22, 2004, the lead plaintiff amended its consolidated complaint to add claims on behalf of purchasers of the securities of Asia Global Crossing. The added claims assert causes of action under the federal securities laws and common law in connection with the Company's research reports about Global Crossing and Asia Global Crossing and for its roles as an investment banker for Global Crossing and as an underwriter in the Global Crossing and Asia Global Crossing offerings. The Citigroup related defendants moved to dismiss all of the claims against them on July 2, 2004. The plaintiffs and the Citigroup related defendants have reached an agreement in principle on the terms of a settlement of this action. In March 2005, the plaintiffs and the Citigroup-related defendants reached a settlement of all claims against the Citigroup-related defendants, including both research and underwriting claims, and including claims concerning losses in both Global Crossing and Asia Global Crossing, for a total of $75 million. |
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