Kirby McInerney LLP Appointed Lead Counsel in Citigroup Inc. Securities Litigation08/19/2008
NEW YORK, August 19, 2008 - Kirby McInerney LLP has been appointed lead counsel to act on behalf of a group of investors who have been appointed lead plaintiff in a securities class action against Citigroup Inc. The action is brought on behalf of all persons who purchased or otherwise acquired the common stock of Citigroup between January 2, 2004 and November 21, 2007, inclusive (the “class period”).
The lawsuit alleges that during the class period, the defendants issued materially false and misleading statements regarding the Company’s exposure to losses based upon the Company’s creation and/or sponsorship of numerous off-balance sheet Variable Interest Entities (“VIE”), and that these actions constitute violations of the Securities Exchange Act of 1934. Defendants are Citigroup and certain of its officers and/or directors.
Disclosure of the truth regarding exposure to VIE-related risks caused, it is alleged, the price of Citigroup common stock to fall by approximately half, all totaled, $122 billion in shareholder losses, which made Citigroup common stock the worst performing stock in the Dow Jones Industrial Average for 2007.