Citibank 2008 Annual Report Download - page 241

partial final judgment on the backloading and notice claims pursuant to
Federal Rule of Civil Procedure 54(b) and stayed the judgment pending
appeal. Defendants filed a notice of appeal on January 22, 2008, and
plaintiffs cross appealed on January 30, 2008; oral argument is scheduled for
March 2009.
27001 Partnership, et al. v. BT Securities Corp., et al. In December
2004, 46 individual purchasers of 10-1/2% Senior Subordinated Notes (the
“Notes”) issued in 1995 in connection with the leveraged recapitalization of
Bruno’s Inc. sued the underwriters of the Notes, including Salomon Brothers,
Inc., together with Bruno’s auditors, in Alabama state court. Plaintiffs
brought state law claims arising out of, among other things, alleged material
misrepresentations and omissions in the Prospectus issued in connection
with the offering. The case was filed following the prior dismissal, after years
of motion practice, of a lawsuit brought in April 2000 by the investment
advisor to these 46 plaintiffs on behalf of its clients, which alleged identical
claims against defendants. Plaintiffs allege that they purchased $190 million
of the Notes and seek compensatory damages, punitive damages, attorneys’
fees and costs. After the commencement of the case in 2004, the parties
engaged in extensive procedural motion practice, which resulted in the
dismissal of several defendants on October 14, 2005. Discovery is ongoing
and trial is currently scheduled to commence in February 2010.
Settlement Payments
Payments required in settlement agreements described above have been
made or are covered by existing litigation reserves.
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Additional lawsuits containing claims similar to those described above may
be filed in the future.
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