PRESS RELEASE: Citigroup FA CAP Class Action Lawsuit Transferred to Federal District Court in New York
Zamansky & Associates : by on September 11, 2009
Zamansky & Associates LLC Named Co-Lead Counsel for Plaintiffs
New York, NY, September 10, 2009 - The class action lawsuit on behalf of Citigroup’s financial advisors whose earned wages were used to purchase stock or options in the Voluntary FA Capital Accumulation Program (FA CAP), Brecher et al. v. Citigroup, Inc. et al. 09-cv-606, has now been transferred to the United States District Court in the Southern District of New York. Prior to that transfer, Zamansky & Associates, LLC was appointed one of the co-lead counsels for the class of Citigroup employees whose earned wages were used to purchase FA CAP stock and options from November 2006 to November 2008. Co-lead counsels now expect to file an amended complaint in this action by October 8, 2009 in the Southern District of New York.
The class action lawsuit alleges, among other things, that Citigroup made misrepresentations about its financial condition and subprime-related holdings which resulted in damages to FA CAP stock and options, and that the vesting and forfeiture provisions of FA CAP stock and options may be unlawful under local state laws which protect earned wages. If you are a current or former Citigroup employee whose earned wages were used to purchase FA CAP stock or options from November 2006 to November 2008, and you wish to contact us in order to evaluate your rights or to participate in the class action lawsuit, we urge you to do so at your earliest convenience.
To contact Zamansky & Associates LLC, visit www.zamansky.com or call (212) 742-1414.
About Zamansky & Associates LLC
Based in New York City, Zamansky & Associates LLC represents institutional and individual investors as well as employees of securities firms and brokerages. The firm has represented a wide array of securities industry clients and the firm’s cases have set major precedents and spurred industry-wide reform.
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What to Expect from Madoff’s Hearing
by on March 11, 2009
All reports indicate that Bernard Madoff will plead guilty tomorrow to orchestrating the largest Ponzi scheme in history. A plea bargain does not appear to be in the cards and this is a good thing because if there were any side deals or leniency of any kind, investors would be outraged.
Bernie Madoff will undoubtedly be put behind bars for, effectively, the rest of his life. I suspect about 20 years, but maybe more. The biggest question that remains is what will happen to his immediate family members and key employees of the firm. I would not count out jail time for immediate family members if they are implicated in any of the charges. Lest we forget, the wife of Andy Fastow, Enron’s CFO who pled guilty, served a year in jail as a result of the Enron scandal. Family members shouldn’t get a pass and I doubt they will if there was wrongdoing.
Though there appears to be no deal in the works, Madoff may get some leeway as to the prison in which he lives out the remainder of his life. My guess is he’s hoping for a place closer to home and away from the most hardened criminals. But any leeway Madoff gets will surely be contingent upon any help he gives to prosecutors. He could be helpful in providing information about feeder funds and their complicity or knowledge of the fraud. Any money that can be recovered from the feeder funds to help make investors whole could help his cause as well. Madoff could also be helpful in indentifying overseas accounts which the SIPC trustee may not have found yet. I’m hopeful he will.
It’s likely that Bernie Madoff will be sent to prison tomorrow. However, that is unlikely to offer much comfort to his victims.
But they should rest assured; Bernie Madoff will spend the rest of his life in jail. My hope is that all those involved in the largest Ponzi scheme in history be brought to justice and prosecuted. And further, that any money that can be recovered, is recovered and given back to investors who deserve it. I am confident U.S. prosecutors will do their best to accomplish this end.