Wolf Popper LLP Files 401k Class Action Against Citigroup
NEW YORK, NY, November 6, 2007 -- Wolf Popper LLP has filed a lawsuit in U.S. District Court for the Southern District of New York on behalf of participants and beneficiaries of the Citigroup 401k Plan and the Citibuilder 401k Plan for Puerto Rico (the "Plans"), for violations of the federal pension law (ERISA) in connection with the loss of value in Citigroup stock acquired and held by present and former employees of Citigroup through the Plans. The goal of this litigation is to recover damages sustained by the participants and beneficiaries of the Plans. The complaint can be viewed on Wolf Popper's website or obtained from the Court.
According to Marian Rosner, who represents the Plaintiff, "Citigroup's employees have their retirement plans in turmoil as Citigroup continued to acquire huge amounts of company stock for the plans even as it gambled with high-risk business practices. The employees now pay the price as the company struggles to come to grips with its exposure to the subprime market and the enormous undisclosed contingent liabilities with respect to off-balance sheet transactions."
The complaint alleges, among other things, that Citigroup and the various defendants breached their fiduciary duties owed to the Plans' participants by: (1) failing to prudently and loyally manage the Plans' assets; (2) failing to provide participants with complete, accurate and material information concerning Citigroup's business and financial condition necessary for participants to make informed decisions concerning the prudence of directing the Plans to invest in Citigroup stock; and (3) failing to appoint and monitor the performance of the other fiduciaries. Citigroup's exposure to the subprime market and its contingent liabilities with respect to various off- balance sheet transaction has led to the resignation of Citigroup's CEO and caused the Plans to suffer well over $1 billion in market losses.
About Wolf Popper LLP
Wolf Popper LLP has extensive experience representing shareholders, including retirement plan investors, in class actions, and has successfully recovered billions of dollars in securities actions.
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