A federal judge in New York has dismissed a lawsuit against Citigroup that alleged its asset management division firm kept $90 million in savings by using an affiliated transfer agent and didn’t pass this along to investors or disclose it to them, the Associated Press reports.
The investors are in the Smith Barney mutual funds and in portfolios run by Citigroup Capital Markets.
The judge also rejected claims against former Citigroup Asset Management CEO Thomas W. Jones and former Smith Barney Funds Treasurer and Chief Financial Officer Lewis E. Daidone.
A judge dismissed a similar case against Jones and Daidone in February.
Citigroup settled the matter in May 2005 by agreeing to pay $208 million.
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.