On the second U.S. Circuit Court of Appeals in New York, a divided court discards reimbursement on the employees who admitted that they have struggled big deficits in their 401(k) plans. This was related to the Citigroup’s share price that fell more than a half percent from January 1, 2007 to January 15, 2008, when it was reported an estimated amount of 18.1 billion dollars subprime-related loss.
Separate support has also been caused the dismissal of the same case against McGraw-Hill Cos, the financial services and education publisher and owner of credit rating agency Standard & Poor’s. Both of these cases were passed under the ERISA or Employee Retirement Income Security Act of 1974.
This case was considered due to represent 153,000 employees in the U.S. and Puerto Rico that has 401(k) plans, tens of thousands of whom cooperatively held about $2.14 billion of Citigroup collection in those plans at the start of 2007.
It was said that Citigroup Inc. was responsible for the constant toning down the company’s exposure regarding the subprime mortgages and other toxic deaths that resulted to hundreds of millions of dollars loss for the many number of workers who has a bank stock in their 401(k)s.
At least twelve people were sued with cases regarding this issue. The former Chief Executive Officer of Citigroup Inc. Charles Prince and Senior Adviser Robert Rubin were included to those who were filed with the said case.
