Good news from the Second Circuit.
Bloomberg, "Citigroup Wins Order Reviving $285 Million SEC Accord":
Citigroup Inc. (C) succeeded in its bid to force a Manhattan federal judge to reconsider his rejection of a $285 million mortgage-securities settlement with the Securities and Exchange Commission as a federal appeals court assailed his move as an abuse of discretion.
The bank challenged U.S. District Judge Jed S. Rakoff’s 2011 refusal to approve the agreement, which would resolve claims that New York-based Citigroup misled investors in a $1 billion financial product linked to risky mortgages.
Business Roundtable filed an amicus brief in January 2012 supporting Citi's position. From our news release:
Washington – In an amicus brief filed today, Business Roundtable (BRT) urged the Second Circuit Court of Appeals to reject a “novel, and potentially dangerous, approach to reviewing settlement agreements” that was adopted by a lower court in the case of United States Securities and Exchange Commission v. Citigroup Global Markets Inc.
“Business Roundtable member companies have a significant interest in resolving enforcement actions through consent decrees, and the Federal District Court’s decision to reject a negotiated settlement threatens to upend longstanding regulatory enforcement procedures and force businesses to engage in protracted litigation,” said BRT President John Engler.
More news coverage ...
- New York Times DealBook blog, "Appeals Court Overturns Decision to Reject S.E.C.-Citigroup Settlement"
- Reuters, "US appeals court says judge wrongly rejected SEC-Citigroup accord"
- WSJ/Marketwatch, "Judge was wrong to block SEC, Citigroup settlement"