{"id":5415,"date":"2013-01-21T00:00:00","date_gmt":"2013-01-21T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2013\/01\/large_financial_firms_roundup"},"modified":"2022-05-02T15:42:05","modified_gmt":"2022-05-02T20:42:05","slug":"large-financial-firms-roundup","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/large-financial-firms-roundup\/","title":{"rendered":"Large Financial Firms Roundup: Securities Fraud Suit Against Citigroup is Dismissed by 2nd Circuit, AIG Wants to File MBS-Related Cases Against Banks, &#038; District Court Reconsiders Partial Dismiss of Class Action Against Morgan Stanley in Pension Fund Case"},"content":{"rendered":"<p><strong>Second Circuit Dismisses Securities Fraud Lawsuit Against Citigroup <\/strong><\/p>\n<p>The U.S. Court of Appeals for the Second Circuit has affirmed the district court\u2019s decision to throw out the securities fraud lawsuit filed by a real estate developer against <a href=\"https:\/\/www.investorlawyers.com\/citigroup-background-information.html\">Citigroup (C) <\/a>and its former CEO Vikram Pandit. Sheldon H. Solow had accused both of them of allegedly making omissions and misstatements that highlighted the bank\u2019s liquidity and capitalization while downplaying financial problems. Because of this, he contends, the financial firm\u2019s stock price became artificially inflated and then fell when the truth about the firm\u2019s financial health became known.<\/p>\n<p>The appeals court held that while Solow, in his securities lawsuit, did an adequate job of pleading alleged misstatements and omissions about Citigroup\u2019s liquidity, he did not succeed in showing that the statements caused his financial losses. It also dismissed his control-person claim against Pandit, saying that there was a failure to plead a primary violation by the bank.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/large-financial-firms-roundup\/\"  title=\"Continue Reading Large Financial Firms Roundup: Securities Fraud Suit Against Citigroup is Dismissed by 2nd Circuit, AIG Wants to File MBS-Related Cases Against Banks, &#038; District Court Reconsiders Partial Dismiss of Class Action Against Morgan Stanley in Pension Fund Case\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Second Circuit Dismisses Securities Fraud Lawsuit Against Citigroup The U.S. Court of Appeals for the Second Circuit has affirmed the district court\u2019s decision to throw out the securities fraud lawsuit filed by a real estate developer against Citigroup (C) and its former CEO Vikram Pandit. Sheldon H. Solow had accused both of them of allegedly [&hellip;]<\/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":[3987,3820,3752,3787,3757,3957],"tags":[],"class_list":["post-5415","post","type-post","status-publish","format-standard","hentry","category-american-international-group","category-citigroup","category-financial-firms","category-morgan-stanley","category-mortgagebacked-securities","category-pension-funds"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Large Financial Firms Roundup: Securities Fraud Suit Against Citigroup is Dismissed by 2nd Circuit, AIG Wants to File MBS-Related Cases Against Banks, &amp; District Court Reconsiders Partial Dismiss of Class Action Against Morgan Stanley in Pension Fund Case &#8212; Investor Lawyers Blog &#8212; January 21, 2013<\/title>\n<meta name=\"description\" content=\"Second Circuit Dismisses Securities Fraud Lawsuit Against Citigroup The U.S. Court of Appeals for the Second Circuit has affirmed the district court\u2019s &#8212; January 21, 2013\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/large-financial-firms-roundup\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Large Financial Firms Roundup: Securities Fraud Suit Against Citigroup is Dismissed by 2nd Circuit, AIG Wants to File MBS-Related Cases Against Banks, &amp; District Court Reconsiders Partial Dismiss of Class Action Against Morgan Stanley in Pension Fund Case &#8212; Investor Lawyers Blog &#8212; January 21, 2013\" \/>\n<meta name=\"twitter:description\" content=\"Second Circuit Dismisses Securities Fraud Lawsuit Against Citigroup The U.S. Court of Appeals for the Second Circuit has affirmed the district court\u2019s &#8212; January 21, 2013\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Large Financial Firms Roundup: Securities Fraud Suit Against Citigroup is Dismissed by 2nd Circuit, AIG Wants to File MBS-Related Cases Against Banks, & District Court Reconsiders Partial Dismiss of Class Action Against Morgan Stanley in Pension Fund Case &#8212; Investor Lawyers Blog &#8212; January 21, 2013","description":"Second Circuit Dismisses Securities Fraud Lawsuit Against Citigroup The U.S. Court of Appeals for the Second Circuit has affirmed the district court\u2019s &#8212; January 21, 2013","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/large-financial-firms-roundup\/","twitter_card":"summary_large_image","twitter_title":"Large Financial Firms Roundup: Securities Fraud Suit Against Citigroup is Dismissed by 2nd Circuit, AIG Wants to File MBS-Related Cases Against Banks, & District Court Reconsiders Partial Dismiss of Class Action Against Morgan Stanley in Pension Fund Case &#8212; Investor Lawyers Blog &#8212; January 21, 2013","twitter_description":"Second Circuit Dismisses Securities Fraud Lawsuit Against Citigroup The U.S. Court of Appeals for the Second Circuit has affirmed the district court\u2019s &#8212; January 21, 2013","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/large-financial-firms-roundup\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/large-financial-firms-roundup\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Large Financial Firms Roundup: Securities Fraud Suit Against Citigroup is Dismissed by 2nd Circuit, AIG Wants to File MBS-Related Cases Against Banks, &#038; District Court Reconsiders Partial Dismiss of Class Action Against Morgan Stanley in Pension Fund Case","datePublished":"2013-01-21T06:00:00+00:00","dateModified":"2022-05-02T20:42:05+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/large-financial-firms-roundup\/"},"wordCount":676,"articleSection":["American International Group","Citigroup","Financial Firms","Morgan Stanley","Mortgage-Backed Securities","Pension Funds"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/large-financial-firms-roundup\/","url":"https:\/\/www.investorlawyers.com\/blog\/large-financial-firms-roundup\/","name":"Large Financial Firms Roundup: Securities Fraud Suit Against Citigroup is Dismissed by 2nd Circuit, AIG Wants to File MBS-Related Cases Against Banks, & District Court Reconsiders Partial Dismiss of Class Action Against Morgan Stanley in Pension Fund Case &#8212; 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