Federal District Court Judge Sidney Stein denied a request by Citigroup, Inc (NYSE: C) to dismiss a class-action lawsuit by a group of pension funds and an insurance company which purchased bonds issued between May of 2006 and August of 2008 on Monday.
The suit involves 48 different bond funds Citigroup, Inc (NYSE: C) raised more than $71 billion in while, according to the suit, “failing to truthfully and fully disclose critical information about its financial condition to investors, notably information pertaining to its ‘toxic mortgage-linked exposures.'”
Specifically, plaintiffs in the case allege that Citigroup, Inc (NYSE: C) did not disclose the details of its exposure to $66 billion worth of collateralized debt obligations and $100 billion worth of structured investment vehicles backed by sub-prime mortgages.
Citigroup, Inc (NYSE: C) filed to have the court dismiss the class action lawsuit saying that the “plaintiffs lack standing to pursue many of their claims.” Citigroup, Inc (NYSE: C) also said that the claims “sound in fraud” and should be set to much stricter requirements.
In a statement to the press, Citigroup said it would “vigorously defend the remaining claims” by the plaintiffs.
