BEVERLY HILLS, Calif., May 8, 2008 (PRIME NEWSWIRE) -- The decline of Citigroup's fixed income hedge funds has led to investor claims and an investigation of Citigroup, Inc. (C), according to a four-law firm legal team with nationally recognized securities law experience.
"We are investigating the decline of fixed income portfolios that Citibank sold. The Falcon, ASTA and MAT funds employed leverage to purchase municipal bonds," said attorney Steven Caruso of Maddox Hargett & Caruso, P.C. "According to published reports, Falcon appears to have lost more than 70% of its value while ASTA and MAT appear to have suffered potential losses in the estimated range of 80% to 90%."
Citigroup recently commenced an exchange program for investors in its Falcon Fund which provides for the estimated payment to investors of 45% to 54% of their invested capital in exchange for a full release from all further legal claims.
While the law firms are investigating the hedge funds that have been adversely impacted by the credit crisis, the individual brokers who sold the hedge funds are not targets of investor claims, according to the investors' legal team which includes the firms of Aidikoff, Uhl & Bakhtiari, of Beverly Hills, Calif.; Maddox Hargett & Caruso, P.C., of Indianapolis, Ind. and New York, N.Y.; Page Perry, LLC, of Atlanta, Ga.; and David P. Meyer & Associates Co., L.P.A., of Columbus, Ohio.
A class action lawsuit was filed against Citigroup in the United States District Court for the Southern District of Florida for purchasers of the Falcon fund, A. Robert Zeff v. Citigroup Alternative Investments, LLC et al., Case No. 2008cv80346.
If you are an investor that lost more than $100,000, you should consider all legal options.
More information is available at www.subprimelosses.com or by contacting an attorney.