Citigroup 401k Plan Litigation
Practice Area: ERISASummary of the Lawsuit
This is a lawsuit filed by and on behalf of participants and beneficiaries of the Citigroup in a putative class action brought against the fiduciaries of Citigroup 401(k) Plans for violations of the Employment Retirement Income Security Act (“ERISA”) in connection with the loss of value in Citigroup stock acquired and held by present and former employees of Citigroup through the 401(k) Plans between January 1, 2007 to January 15, 2008. Cohen Milstein is counsel in the case, but two other law firms, Harwood Feffer, LLP and Wolf Popper LLP, were appointed Interim Co-Lead Counsel for the putative class.
Summary of the Claims
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.
Status of the Litigation
Cohen Milstein filed a complaint on behalf of two participants in the Plans on December 13, 2007. On January 22, 2008, Harwood Feffer, LLP and Wolf Popper LLP were appointed Interim Co-Lead Counsel and filed a consolidated amended complaint on behalf of the putative class on September 15, 2008. Defendants moved to dismiss the complaint on November 21, 2008.
On August 31, 2009, the Court issued an opinion and order dismissing the consolidated amended complaint. On September 8, 2009, Interim Co-Lead Counsel filed a notice of appeal.
Whom to Contact for More Information:
If you are a member of the proposed class or you have information which might assist us in the prosecution of these allegations, you may contact either
Interim co-lead counsel:
Marian P. Rosner
Andrew E. Lencyk
James Kelly-Kowlowitz
WOLF POPPER LLP
845 Third Avenue
New York, New York 10022
Telephone: (212) 759-4600
Facsimile: (212) 486-2093
Robert I. Harwood
Samuel K. Rosen
Tanya Korkhov
HARWOOD FEFFER LLP
488 Madison Avenue
New York, New York 10022
Telephone: (212) 935-7400
Facsimile: (212) 753-3630
or
Bruce Rinaldi, Esq. brinaldi@cohenmilstein.com
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W., Suite 500
Washington, D.C. 20005
Telephone: 888-240-0775 (Toll Free) or 202-408-4600