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A federal district court judge in New York dismissed a lawsuit filed against Citigroup Inc. ($51.00 0%) and its CEO Vikram Pandit this week.
The dismissal ended claims levied by real estate mogul Sheldon Solow against the bank. Solow alleged Citigroup and its leadership misled investors by making misrepresentations and omissions about the company's capitalization and liquidity levels. It's the second complaint filed by Solow who alleged in court documents that "Citigroup knew but did not disclose material risk that it could fall below the well-capitalized threshold because of continuing write-downs on tens of billions of dollars in toxic mortgage-related assets," he said.
He alleged, "Citigroup knew but did not disclose that its liquidity was eroding because among other things, its foreign depositors were withdrawing their deposits."
Solow claims he relied on Citi's alleged misrepresentations and acquired shares in late 2008.
He filed suit later, claiming that he had to sell his Citi shares at a loss of 87% in March 2009.
U.S. District Judge Robert Sweet dismissed the second amended complaint filed by the real estate mogul saying it "fails to allege sufficient facts establishing defendants to have made material misstatements or omissions regarding Citigroup's capitalization levels."
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