A recent Forbes.com article reports a federal judge has tossed out what was believed to be the largest settlement with regulators regarding the marketing and sale of collateralized debt obligations (CDO).
In mid-October, Citigroup agreed to pay out $285 million to settle charges of misleading investors when purchasing collateralized debt obligations tied to the housing market. As is typical with such regulatory settlements, Citi did not admit or deny any wrongdoing in the matter.
Although the $285 million settlement appeared to be enough to satisfy the Securities & Exchange Commission investigators, it apparently was not enough for Judge Jed Rakoff, who rejected the settlement today.
The full article may be found here:
The attorneys at Colling Gilbert Wright and Carter are currently investigating and filing claims on behalf of investors who were sold products containing mortgage related debt without proper disclosure. If you have lost money in a bond fund or other fixed income security containing mortgage related paper, please contact our office for a free case evaluation. Thank you.