Notice of Filing of Securities Class Action Against Citigroup Global Markets Inc. F/K/A Salomon Smith Barney Inc.
Notice of Filing of Securities Class Action Against Citigroup Global Markets Inc. F/K/A Salomon Smith Barney Inc.: "LOS ANGELES, April 18 /PRNewswire/ -- Sauer & Wagner LLP announces that it has commenced a Class Action lawsuit in the United States District Court for the Central District of California against Citigroup Global Markets Inc. F/K/A Salomon Smith Barney Inc. ('Citigroup') on behalf of former clients of Paul Joseph Sheehan D/B/A Paul J. Sheehan & Associates ('Sheehan'), who maintained investment accounts at Citigroup, from April 1, 1999 to September 30, 2000, inclusive (the 'Class Period'). The lawsuit charges Citigroup with violations of federal securities and California law as a direct result of enabling Sheehan, an investment advisor, to engage in a fraudulent 'trade allocation' or 'cherry-picking' scheme whereby Sheehan improperly allocated profitable day trades of securities to his personal investment accounts maintained at Citigroup at the expense of his clients' personal investment accounts also maintained at Citigroup. The Complaint alleges that during the Class Period, Citigroup permitted Sheehan to initiate day trades at Citigroup through the use of a trade allocation account (the 'Sheehan Allocation Account') and to provide allocation instructions electronically to Citigroup at the end of each trading day. As a direct result of allowing Sheehan to allocate trades in this manner, Sheehan knew which of the day trades had been profitable before transmitting allocation instructions to Citigroup, and he was able to allocate profitable trades to his personal investment accounts to the detriment of his clients." (Full story at link)
posted by Monkeyman @ 8:45 AM
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