Case: In re: CSO Hedge Fund Litigation, No. 12-cv-7717 (GHW) (S.D.N.Y.)

Court: Southern District of New York
Class: persons who purchased, held or otherwise acquired any class of shares in CSO Ltd. or CSO US Ltd. (two feeder funds in Citigroup's Corporate Special Opportunities hedge fund)
Attorneys: Frederic S. Fox, David A. Straite, Jason A. Uris

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.

On August 10, 2015, the parties reached an agreement to settle all claims for $13.5 million, and moved for an order preliminarily approving the settlement.  The Court approved the settlement on August 19, 2015.  If you purchased, held or otherwise acquired any class of shares in CSO Ltd. or CSO US Ltd., you might be a member of the Settlement Class and your rights might be affected by the Settlement. Please review the documents below for more information.