July 8, 2009 - The case was voluntary dismissed.

May 8, 2009 - The court denied the defendants motion to dismiss without prejudice.

December 4, 2008 - A motion to dismiss the consolidated complaint was filed.

October 2, 2008 - A consolidated complaint was filed.  

May 1, 2008 - An investor in shares of MAT Five LLC (privately traded) filed a lawsuit in the U.S. District Court for the Southern District of New York against Citigroup Global Markets Inc, Citigroup Alternative Investments LLC, Citigroup Fixed Income Alternatives and MAT Five LLC pursuant and/or traceable to a false and misleading Private Placement Memorandum on or about December 18, 2006 and/or its supplements.

The complaint charges the defendants with violations of the Securities Act of 1933 and Delaware law. Specifically, the complaint alleges that during late 2006 and continuing into early 2007, Citigroup Global Markets Inc, through Citigroup Alternative Investments LLC and Citigroup Fixed Income Alternatives, targeted many of its clients who were believed to be interested in fixed-income investments which would provide higher yields. One type of investment Citigroup Global Markets Inc promoted to its investors was municipal bond opportunities involving the arbitrage of tax-exempt and taxable bonds. These were actually very risky investments which could drop precipitously if the markets changed, or if the investments were not properly managed. Defendants caused the Private Placement Memorandum and presentation materials for MAT Five LLC (the “Selling Documents”) to be disseminated beginning in 2006 in connection with the issuance of hundreds of millions of dollars of shares. The Selling Documents were false and misleading in that the strategy to be employed would not protect investors as suggested by the ratings of the underlying investments and defendants did not have risk management practices in place to prevent employees of Citigroup Alternative Investments LLC from engaging in highly risky investment practices.

On March 20, 2008, Citigroup Alternative Investments LLC wrote a letter to investors which stated that the recent credit crunch had rapidly accelerated and spread into the municipal bond markets. As a result, the cash positions and net asset values of the MAT Five LLC fund had been severely impacted, and they were going to indefinitely suspend the fund’s income distributions in an effort to preserve liquidity.

MAT Five LLC is a limited liability company that makes investments in limited liability company interests issued by Municipal Opportunity Fund Five National, a limited liability company that makes leveraged investments in fixed-rate, tax-exempt municipal bonds.