Citigroup Global Markets, Inc.(C) is continuing to be pursued for securities arbitration claims, the Securities Law Firm of Klayman & Toskes said Friday. The firm said the claims, with the Financial Industry Regulatory Authority's Office of Dispute Resolution, were on behalf of investors who sustained losses in Smith Barney/Citi Private Bank's ASTA and MAT Funds.
According to one claim filed against Citigroup, one type of investment Citigroup promoted to its investors was municipal bond opportunities involving the arbitrage of tax-exempt and taxable bonds. These were actually very risky investments which could drop precipitously if the markets changed, or if the investments were not properly managed.
In connection with the marketing of the Funds, Citigroup provided their clients with presentation materials concerning these products. However, the presentation materials are alleged by the claims to be false and misleading in that the strategy to be employed would not protect investors as suggested by the ratings of the underlying investments.
Further, the Firm said it believed Citigroup failed to implement risk management strategies to prevent the Funds' management from investing the Funds' assets in risky and speculative investments.
C closed Friday's regular trading session on the NYSE at $3.75. down $0.04 or 1.06%.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.