A federal judge has dismissed a lawsuit by the Securities and Exchange Commission against two executives at a Citigroup transfer agent who realized nearly $100 million in savings from an affiliated transfer agent but kept the profits for the company rather than to lower fund expenses.

U.S. District Judge Richard C. Casey ruled in favor of a summary judgment motion filed by Thomas W. Jones, the former CEO of Citigroup Asset Management, and Lewis E. Daidone, the former treasurer and chief financial officer of the Smith Barney family of funds.

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