A federal judge in New York struck down a settlement previously agreed to between the Securities and Exchange Commission (SEC) and Citigroup. In his ruling, U.S. District Judge Jed Rakoff cited the public’s need for clarity about the financial markets.
The settlement stemmed from the SEC’s allegations that Citigroup misled investors about a complex mortgage investment which resulted in a $160 Million profit to Citigroup and millions in losses to investors. Judge Rakoff stated that the SEC has an inherent duty to see that the truth emerges.
Trial in the case is set for July 16.