{"id":4637,"date":"2008-07-25T09:54:29","date_gmt":"2008-07-25T09:54:29","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2008\/07\/judge_approves_citigroup_falco"},"modified":"2022-03-29T15:32:18","modified_gmt":"2022-03-29T20:32:18","slug":"judge-approves-citigroup-falco","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/judge-approves-citigroup-falco\/","title":{"rendered":"Judge Approves Citigroup Falcon Fund Investors\u2019 Decision to Withdraw Lawsuit"},"content":{"rendered":"

\t\t\t\tIn New York, a judge has approved the decision by investors of a Citigroup Falcon Fund to drop their lawsuit asking for more data about how the bank plans to liquidate the fund.<\/p>\n

On February 22, Citigroup<\/a> announced it was providing the Falcon Funds a $500 million line of credit and consolidating $10 billion in liabilities and assets.
\nCitigroup began suspending distributions and redeptions and started closing down the fund in March. The fund’s value dropped by 80% and Citigroup offered to pay investors 45 cents for every dollar.<\/p>\n

The investors had been asked to tender shares of Falcon Strategies Two LLC, but they wanted corrections made to the offering memo because misleading and missing information made it impossible for them to value their stakes. U.S. District Judge Sidney Stein, who this week approved the withdrawal of the investors’ class action suit, rejected their motion to push forward the lawsuit about the tender offer. He said the plaintiffs were trying to turn the securities laws’ anti-fraud provisions into provisions of broad disclosure. <\/p>\n

The Falcon Funds mainly invested in fixed-income securities and other debt instruments, and they may have been exposed to weaknesses in the mortgage, credit, and bond markets. Citigroup brokers are accused of recommending the funds to investors looking for conservative investments when, in fact, the funds may have been accompanied by a high level of risk. <\/p>\n

Related Web Resources:<\/strong><\/p>\n

The Law Firm of Shepherd Smith Edwards & Kantas LTD LLP Investigates Losses in Falcon Hedge Funds<\/a>, Primenewswire.com, July 2, 2008
\nCitigroup Alternative Investments LLC : Falcon Strategies Two B LLC Hedge Fund, Stanford Law School Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

In New York, a judge has approved the decision by investors of a Citigroup Falcon Fund to drop their lawsuit asking for more data about how the bank plans to liquidate the fund. On February 22, Citigroup announced it was providing the Falcon Funds a $500 million line of credit and consolidating $10 billion in […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3820,3804],"tags":[],"class_list":["post-4637","post","type-post","status-publish","format-standard","hentry","category-citigroup","category-class-action-lawsuits"],"yoast_head":"\nJudge Approves Citigroup Falcon Fund Investors\u2019 Decision to Withdraw Lawsuit — Investor Lawyers Blog — July 25, 2008<\/title>\n<meta name=\"description\" content=\"In New York, a judge has approved the decision by investors of a Citigroup Falcon Fund to drop their lawsuit asking for more data about how the bank plans — July 25, 2008\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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