NEW YORK, May 16, 2008 (PRIME NEWSWIRE) -- Attorney Advertising. The law firm of Milberg LLP announces that on May 8, 2008, it filed a class action lawsuit on behalf of persons or entities that purchased auction rate securities (ARSs) from Citigroup, Inc. or related entities (NYSE:C) between May 8, 2003 and February 13, 2008, inclusive (the "Class Period"), and who continued to hold such securities as of February 13, 2008. This litigation, captioned Wedgewood Tacoma LLC v. Citigroup, Inc., et. al., 08-cv-4630 (LTS), has been filed and is pending in the United States District Court for the Southern District of New York. The action has been brought against Citigroup, Inc. and certain affiliates (Citigroup Global Markets, Inc. and Citi Smith Barney). A copy of the complaint is available from the Court, or can be viewed on Milberg LLP's website at http://www.milberg.com.
The complaint in this action alleges, among other things, that Citigroup and/or its affiliates acted in violation of Sections 10(b) and 20(a) of the Securities Act of 1934, as well as the Investment Advisors Act of 1940, 15 U.S.C. 80b-1 et. seq. The complaint alleges that the defendants engaged in deceptive conduct in connection with the marketing and sale of ARSs (which are municipal bonds, corporate bonds or preferred stocks with interest rate or dividend yield components which are set through "auctions"). ARSs usually have intermediate to long-term maturities, typically 30 years, or, in the case of preferred stocks, no maturity date. Since being introduced in 1984, the market for ARSs has increased significantly, and, prior to the auction market's collapse in February, 2008, was valued in the aggregate at approximately $330 billion.
The complaint also alleges, among other things, that defendants marketed and sold ARSs to investors as liquid and cash equivalents, and suitable alternatives to other cash equivalent investments such as money market funds or certificates of deposit (CDs), using uniform and standardized sales pitches created and/or approved by company management. The complaint further alleges that many holders of ARSs marketed and sold by Citigroup and other broker-dealers have been unable to liquidate their investments or exit their positions in these securities following the collapse of the market caused by Citigroup's and other broker-dealers' cessation of their prior routine and pervasive support for these auctions and the ARS market in February, 2008, and that the collapse of the ARS market had a significant negative impact on the reported value of these securities. The complaint further alleges, among other things, that Citigroup and the other defendants failed to disclose (a) that these securities were in fact not cash equivalents or suitable alternatives to investments such as money market funds or CDs; (b) the true liquidity risks associated with ARS investments; and (c) that in fact no real market for these securities could or would exist as it did were it not for defendants' and other broker-dealers' constant and pervasive creation of and support for the ARS market and auctions.
If you purchased or otherwise acquired ARSs from Citigroup during the Class Period referenced above, and continued to hold such securities as of February 13, 2008, you may, no later than May 27, 2008, request that the Court appoint you as lead plaintiff.
A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as a lead plaintiff. You may retain Milberg LLP, or other attorneys, to serve as your counsel in this action.
Milberg LLP has been representing individual and institutional investors for nearly 40 years and serves as lead counsel in federal and state courts throughout the United States. Please visit the Milberg website at http://www.milberg.com for more information about the firm, or at http://www.milberg.biz/auction-rate-security.html for more information concerning litigation involving auction rate securities. If you wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact the following attorneys:
Jerome M. Congress (jcongress@milberg.com)
Lori G. Feldman (lfeldman@milberg.com)
Kent A. Bronson (kbronson@milberg.com)
Milberg LLP One Pennsylvania Plaza, 49th Fl. New York, NY 10119-0165 Phone number: (800) 320-5081 Email: contactus@milberg.com
Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca/