SOURCE: Schoengold Sporn Laitman & Lometti, P.C.

May 15, 2008 16:03 ET

Schoengold Sporn Laitman & Lometti, P.C. Provides Notice to All Investors in Auction Rate Securities Marketed by Citigroup Global Capital Markets, Inc., Regardless of Whether Their Accounts Were Discretionary or Non-Discretionary

NEW YORK, NY--(Marketwire - May 15, 2008) - Schoengold Sporn Laitman & Lometti, P.C. announces that it has filed a proposed nation-wide consumer class action entitled Stockhamer v. Citigroup, Inc. and Citigroup Global Capital Markets, Inc, No. 08-cv-3904 in the federal district court for the Southern District of New York, wherein it is alleged that defendants Citigroup, Inc. ("Citi") and Citigroup Global Capital Markets, Inc. ("CGCM") (collectively, "Defendants") violated the Investment Advisers Act of 1940, violating the trust and confidence placed in them by their clients, and wrongfully caused their clients to invest their funds in Auction Rate Securities ("ARSs"), which were touted by Defendants as "cash-alternatives" providing the same liquidity as cash and higher yields than money market funds, treasury bills or FDIC-insured savings accounts. It is alleged that Defendants did not disclose the risks and conflicts of interest inherent in the ARS investment and thereby caused Plaintiffs and other members of the Class to have their monies "frozen" and to sustain damages. It is further alleged that Defendants violated the New York General Business Law ("GBL") § 349 and Florida's Deceptive and Unfair Trade Practices Act (FDUTPA) Fla. Stat. § 501.201 et seq., which prohibit deceptive acts or unfair practices, the Rules of the New York Stock Exchange ("NYSE") and the National Association of Securities Dealers ("NASD"), and constituted a breach of fiduciary duty, a breach of the implied covenants of good faith and fair dealing, common law negligence, negligent misrepresentation and unjust enrichment.

If you invested in Auction rate Securities marketed by Citigroup or CGCM, whether or not you had a discretionary account with the Defendants, your rights may be affected by this lawsuit.

To further discuss your rights and options, you may call collect or otherwise contact the undersigned, who will be pleased to assist:

Contact Information

  • CONTACT:
    Frank R. Schirripa, Esq.
    Daniel B. Rehns, Esq.
    Schoengold Sporn Laitman & Lometti, P.C.
    19 Fulton Street, Suite 406
    New York, New York 10038
    Tel: (212) 964-0046
    Fax: (212) 267-8137
    Toll Free: (866) 348-7700
    E-Mail: Email Contact
    Website: www.spornlaw.com