Mutual fund giant
Vanguard said its funds were duped into buying the bonds through "false and misleading'" financial statements, in which Citibank failed to disclose Enrons true financial situation and its own role in the deals. Vanguard said the scheme was discovered as the result of U.S. Senate hearings on Enron over the last year, according the report.
Citigroup, the parent company of Citibank, and Salomon Smith Barney did not comment on the lawsuit but Citigroup testified that it "acted at all times in the good-faith belief that the transactions complied with existing law and standards."