Co-Lead Plaintiffs OK'd In Subprime Suit V. Citi

Co-Lead Plaintiffs OK'd In Subprime Suit V. Citi - 3/10/2009 , Class Action News, Class Action, Securities News, shareholder class action, claim, litigation, securities action, common stock'>

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HEADLINES \| SETTLEMENTS AND DISMISSALS \| COURT FILINGS LINKS TO OTHER NEWS \| NEWS ARCHIVE	HEADLINES ARCHIVED SETTLEMENTS AND DISMISSALS ARCHIVED

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Co-Lead Plaintiffs OK'd In Subprime Suit V. Citi
Evan Weinberger

Securities Law 360. March 10, 2009
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EXCERPT: A magistrate judge has approved both the City of Ann Arbor Employees' Retirement System and the Greater Kansas City Laborers' Pension Fund to serve as lead plaintiffs in a class action against Citigroup Mortgage Loan Trust Inc. alleging that the Citigroup unit made false claims to sell mortgage pass-through certificates backed by subprime mortgages. In his report on Monday, Magistrate Judge Thomas H. Boyle also approved naming Coughlin Stoia Geller Rudman & Robbins LLP to serve as lead counsel in the lawsuit, which was originally launched in the New York State Supreme Court in Nassau County last March. The case was removed to the U.S. District Court for the Eastern District of New York last April. The lawsuit alleges that Citigroup Mortgage issued a false and misleading registration statement regarding the mortgage pass-through certificates in December 2006 that overstated the value of the assets backing the certificates. In the fall of 2007, according to the complaint, the truth about the mortgage assets came to light, which led ratings agencies to put the certificates on their watch list, dropping their value precipitously. Citigroup had challenged the naming of the pension fund as a co-lead plaintiff, saying that the two plaintiffs hadn't provided sufficient evidence to back up their request to have two lead plaintiffs in the case, according to the magistrate judge's report. While Citigroup did have grounds to challenge the pension fund and retirement plan's request under the Private Securities Litigation Reform Act, Judge Boyle said that there had been no other concerns registered. “It should be noted that if any of the other members of the putative class shared defendants' concerns that appointing co-lead plaintiffs would somehow jeopardize this action, they likely would have opposed the within motion. No such objections have been raised,” Judge Boyle wrote in his report.

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