On Friday, April 03, 2009, an investor in Citigroup, Inc 8.50% Non-Cumulative Preferred Stock, Series F (NYSE:C-M) has filed a proposed securities class action lawsuit in the United States District Court for the Southern District of New York on behalf of all persons who acquired depositary shares of Citigroup, Inc. 8.50% Non-Cumulative Preferred Stock, Series F (NYSE:C-M) pursuant and/or traceable to a false and misleading registration statement and prospectus issued in connection with the Company’s May 2008 initial public offering of the preferred series F shares of Citigroup over alleged securities laws violations by Citigroup, Inc, certain of its officers and directors, the underwriters of the Offering of the preferred Series F and Citigroup’s auditor.
According to the complaint the plaintiff alleges that Citigroup, certain of its officers and directors, the underwriters of the Offering and Citigroup’s auditor violated the Securities Act of 1933. It is the second securities class action on behalf of certain preferred shares against Citigroup. Citigroup was already hit by a proposed securities class action on behalf of Citigroup 8.125% Non-Cumulative Preferred Stock, Series AA, pursuant and/or traceable to a false and misleading registration statement and prospectus to issued in connection with the Company’s January 2008 offering of the Company’s Preferred Stock on March 13, 2009.

The complaint from Friday, April 03, 2009 alleges defendants consummated the Offering of the preferred Series F pursuant to the false and misleading Registration Statement and Prospectus selling 81.6 million shares of the Securities at $25 per share, for proceeds of over $2 billion. The Registration Statement incorporated Citigroup’s financial results for 2007 and the first quarter of 2008. Citigroup ultimately announced huge multi-billion dollar writedowns associated with its exposure to subprime mortgages, related bonds called collateralized debt obligations, and commercial real estate loans and investments, as well as loans to companies with low credit ratings, causing the price of the Securities to decline, so the lawsuit.