Citigroup Inc. has won a $900 million case having to with the company allegedly issuing flawed research that caused investor Donald Sturm to lose money, with an NASD arbitration panel ruling in Citigroup's favor, Reuters reports.
On the highly positive recommendations of Citigroup analyst Jack Grubman, Sturm held onto 21 million WorldCom shares, but Citigroup argued that Sturm was a knowledgeable investor responsible for his own actions.
"We are very pleased with the panel's decision, as well as with what has been quite a favorable success rate for these claims, in general," said Citigroup spokeswoman Shannon Bell.
J. Boyd Page, the lawyer who handled Sturm's case said, "The arbitration panel ultimately did not share our view that we presented a comprehensive and compelling case of fraud, one that was largely built with the other side's documents and testimony."
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.