Citigroup Succeeds in Getting Employee Class Action Dismissed
On Wednesday, a federal judge tossed a class action suit (discussed in this April 7, 2015 blog) brought by Citigroup employees that alleged the banking giant failed to warn them about investing in company stock for their 401Ks during the period leading up to the 2008 financial crisis. The court found some of the claims were without merit while others were time barred.
In dismissing the suit, United States District Court Judge John Koeltl found the the plaintiffs missed an Employee Retirement Income Security Act (ERISA) deadline and failed to show any material nonpublic information that would have altered the “total mix” of market knowledge. He ruled if the plaintiffs had all the facts necessary to bring their ERISA claims before Dec. 8, 2008, the action would be time-barred as most of the events occurred well before that drop dead date. The judge cited several key events including the company stock’s continuous share price decline, rating agency and analyst downgrades and sell recommendations as well as the increasing failures of subprime mortgages in 2007.l wrote.
The experienced securities fraud attorneys at Colling Gilbert Wright have filed and litigated ERISA and overconcentraton claims on behalf of employees enrolled in 401K plans. If you believe, you have lost retirement money due to misrepresentation or negligence on the part of your broker or fiduciary, pleas contact us for free case evaluation.