BEVERLY HILLS, Calif., Nov. 19, 2008 (GLOBE NEWSWIRE) -- Aidikoff, Uhl & Bakhtiari and co-counsel remind purchasers of Citigroup's MAT and ASTA hedge funds that their rights may be affected by the recent class action settlement in Raymond v. Mat Five, LLC et al. which is pending in the Court of Chancery in Delaware. Citigroup or Smith Barney customers who do not take action in the next 16 days may lose their ability to file individual FINRA arbitrations.
The legal team (www.subprimelosses.com) 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 has filed numerous FINRA arbitration claims against Citigroup Global Markets (NYSE:C) regarding the collapse of its MAT and ASTA funds.
We regret our characterization, in a previous press release, of the class action settlement as providing class members with only an additional five cents per share over the current net asset value. Rather, according to the settlement documents, it provides, among other things, monetary relief beyond the five cents per share; the choice of four options pursuant to which investors can choose to liquidate their investments in MAT Five or remain investors therein; and material disclosures concerning the sale and operation of MAT Five that investors can use to make an informed decision as to which option to choose. We regret suggesting that this class action settlement is inappropriate or unfair to investors and we withdraw all such statements. Investors should consider the merits of the settlement based on their own personal circumstances.
The arbitrations allege that Citigroup Global Markets marketed and sold these funds to some of its best retail clients as safe, secure, low-risk municipal bond funds that would generate tax free returns of between 5% and 8%. Citigroup also told customers that these funds would be closely monitored in accordance with a sophisticated risk management strategy that would minimize, if not eliminate, any significant downside risk of loss. In fact, Citigroup engaged in highly risky investment practices that resulted in fund losses of approximately 80%.
As the truth about the Funds' dismal performance began to emerge late in 2007, it became clear that leverage in the portfolios had increased substantially. Despite this ratcheting up of risk, Citigroup employees assured investors that prices were already recovering which would lead to improved results in the future. By March of 2008, investors learned that they would no longer receive income distributions, nor could they redeem their shares.
To discuss your options please contact us at www.subprimelosses.com or you may directly contact an attorney below.