SOURCE: Klayman & Toskes

June 27, 2008 19:30 ET

Notice to All Investors of Citigroup's MAT Funds From the Securities Law Firm of Klayman & Toskes: July 15, 2008 Deadline to Reply to MAT Funds Tender Offer Is Only 18 Days Away

NEW YORK, NY--(Marketwire - June 27, 2008) - The Securities Law Firm of Klayman & Toskes,, said today that following its announcement that it is investigating Citigroup's (NYSE: C) ASTA and MAT Funds, the Law Firm has received numerous inquiries from investors who sustained losses in the ASTA and MAT Funds. Accordingly, Klayman & Toskes will be continuing to pursue claims on behalf of investors who have suffered losses as a result of the credit crisis and subprime fallout. Investors who lost money in the ASTA and MAT Funds and who wish to inquire about the class action lawsuit which was filed in the United States District Court for Southern District of New York should contact Klayman & Toskes to discuss all of their legal options.

Many investors of the MAT Funds have been given a tender offer by Citigroup in exchange for a release of all legal claims. However, investors of the MAT Funds should cautiously study such offers, and are strongly encouraged to consider all of their legal rights before agreeing to accept any offers from Citigroup. According to Klayman & Toskes' investigation of Citigroup's proposed tender offer, investors will most likely recover a higher percentage of their losses by filing an individual arbitration claim against the brokerage firm. According to Jahan K. Manasseh, an attorney at Klayman & Toskes, "The fact that Citigroup is looking to settle with investors rather quickly raises suspicion and substantiates the fact that the brokerage firm realizes its exposure and liability in connection with the manner in which it managed the MAT Funds." To date, the MAT Funds have lost about 90% of their original value, and have left investors wondering what went wrong.

Following the launch of the MAT Funds, Citigroup solicited several of its high net worth customers, many of whom were retirees, to invest in the Funds. Within its sales pitch, Citigroup represented the MAT Funds to be fixed income products that could provide higher yields, and that the Funds were "safe" and "secure" investments, not subject to a significant amount of volatility. The Complaint filed in federal court alleges that "[o]ne type of investment Citigroup promoted to its investors was municipal bond opportunities involving the arbitrage of tax-exempt and taxable bonds. These were actually very risky investments which could drop precipitously if the markets changed, or if the investments were not properly managed." Presentation materials for the MAT Funds were provided to Citigroup's customers along with the distribution of hundreds of millions of dollars of shares. The presentation materials are alleged to be "false and misleading in that the strategy to be employed would not protect investors as suggested by the ratings of the underlying investments."

Further, it is believed that Citigroup failed to implement risk management strategies to prevent the MAT Funds' management from investing the Funds' assets in risky and speculative investments. Moreover, as the Funds were losing value, Reaz Islam, the manager of the Funds, assured brokers and customers that the Funds would rebound in value. This only allowed the bleeding to continue, and caused investors to lose even more money. Citigroup sent a letter to the MAT Funds' investors on March 20, 2008. In the letter, the firm advised investors that the credit crisis had spread into the municipal bond markets. Consequently, the cash positions and net asset values of the MAT Funds had been severely impacted, and Citigroup would therefore suspend the MAT Funds' income distributions indefinitely. Apparently, the freeze on distributions was an attempt to preserve liquidity in the Funds.

The attorneys at the Law Firm of Klayman & Toskes are dedicated to aggressively pursuing claims on behalf of investors who have suffered losses in the ASTA and MAT Funds, and as a result of the credit crisis and subprime fallout as a whole. Klayman & Toskes, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.

If you want to discuss your legal options at no obligation, including whether the filing of an individual arbitration claim is right for you, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, or visit us on the web at


Contact Information

  • Contact:
    Steven D. Toskes, Esquire
    Jahan K. Manasseh, Esquire
    Klayman & Toskes, P.A.