A FINRA arbitration panel has ordered Citigroup Global Markets to pay a combined $54 million in awards to clients who were sold the MAT/ASTA funds (FINRA Arbitration 09-03297). The claimants, who were former clients of Citigroup, alleged that they were the victims of securities fraud, unsuitability, and a failure to supervise arising from multiple investments in the MAT/ASTA municipal bond hedge funds. The award includes more than $20 million in punitive damages, attorneys’ fees, and other costs accrued during the arbitration proceeding.
The funds have generated numerous claims from investors who have alleged that they were told the funds were conservative and perfectly suitable for investors intending to preserve their capital. In reality, the funds were engaged in a risky investment strategy known as municipal arbitrage. They sustained losses of over 90% in 2007 and 2008. To learn more about the funds, click here.
If you believe you have suffered losses because of this product, please contact Smiley Bishop & Porter LLP to discuss your rights at 770-829-3850 or toll-free (800) 697-4514. Smiley Bishop & Porter LLP represents individual and institutional investors in securities arbitration and business litigation. The firm focuses on cases involving defrauded investors, suitability claims, and mismarketeted investment products.