Case: In re: CSO Hedge Fund Litigation, No. 12-cv-7717 (GHW) (S.D.N.Y.) Court: Southern District of New York |
Kaplan Fox is court-appointed co-lead counsel for the plaintiffs in the class action against Citigroup, Inc. (“Citigroup”) and its wholly-owned subsidiary Citigroup Alternative Investments, LLC (collectively, “Defendants”) arising out of the collapse of Citigroup's "Corporate Special Opportunities" or "CSO" hedge fund. The complaint alleges that Citigroup and CAI falsely represented their risk controls in the fund's PPMs, and in 2007 fraudulently induced investors to refrain from redeeming with a series of false statements and omissions concerning the fund following an offer to purchase debt securities that exceeded the NAV of the fund. Citigroup booked a $62 million loss reserve with respect to the securities. On March 7, 2014, Judge Castel denied portions of Defendants' motion to dismiss, finding that the facts led to a "strong inference" of fraud. |