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A judge’s rejection of a $285 million settlement between Citigroup Inc. (C) and the Securities and Exchange Commission won’t be reviewed by a federal appeals court until September.
In November, U.S. District Judge Jed Rakoff denied approval of the settlement, which was intended to resolve SEC claims that Citigroup, the third biggest U.S. bank, misled investors in $1 billion in securities linked to risky mortgages. In the ruling, Rakoff criticized the SEC’s practice of agreeing to settlements that don’t require the defendants to admit wrongdoing.
Citigroup and the SEC both appealed Rakoff’s ruling. The appeals court last week assigned lawyer John R. Wing to argue the judge’s position before the appeals court.
In an order today, the U.S. Court of Appeals in New York scheduled oral argument in the case for some time in the last two weeks of September. Last week the court blocked Rakoff from holding a trial in the case while it considers the appeal.
The case is U.S. Securities and Exchange Commission v. Citigroup Global Markets Inc., 11-05227, U.S. Court of Appeals for the Second Circuit (New York).
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