Federal appeals court dismisses Sheldon Solow’s lawsuit against Citigroup

New York /
Jan.January 15, 2013 04:00 PM

The U.S. Court of Appeals for the Second Circuit on Tuesday upheld the dismissal of developer Sheldon Solow’s securities fraud suit against Citigroup, affirming a lower court’s May ruling that the bank did not cause Solow to lose money on stock holdings by playing up its financial health, Law360 reported.

Before the 2008 financial crisis, Citibank had claimed that it was well-capitalized, and Solow said that the bank’s statement prompted him to buy 40,000 shares of its stock for roughly $500,000.

The three-judge panel said the bank met the regulatory definition of the term at the time. Moreover, the appellate court also dismissed Solow’s claim that the bank’s statement caused him to hold its stock through the beginnings of the financial crisis. Solow sold the stock in March 2009 for $50,000, but the court said that he had failed to prove that the bank’s statements “proximately caused” losses.

Solow, who jumped to No. 111 on Forbes’ list of richest Americans in 2012, is a consummate bringer of lawsuits, but he has also been on the receiving end. In August, Solow was sued by one of his top executives, who claimed that he was dismissed without cause and didn’t receive his retirement package, as The Real Deal previously reported. [Law360]–  Hiten Samtani


Related Articles

arrow_forward_ios
Solow Building Company chairman Stefan Soloviev, CEO Michael J. Hershman and vice chairman Hayden Soloviev (Solow Residential, Fairfax, LinkedIn)
Stefan Soloviev, Sheldon Solow’s son, reorganizes family firm
Stefan Soloviev, Sheldon Solow’s son, reorganizes family firm
Sheldon Solow (Getty)
Billionaire developer Sheldon Solow dies at 92
Billionaire developer Sheldon Solow dies at 92
From left: 410 Tenth Avenue, 745 Fifth Avenue, One Manhattan West and 522 Fifth Avenue (Google Maps, Wikimedia)
Real estate lending bounces back in September in a big way
Real estate lending bounces back in September in a big way
Citigroup CEO Michael Corbat (Credit: Getty; iStock)
Doublewide cubicle? Citigroup eyes suburban offices so workers can spread out
Doublewide cubicle? Citigroup eyes suburban offices so workers can spread out
Nightingale’s Eli Schwartz and 111 Wall Street (Credit: Google Maps)
Nightingale partnership closes on $175M purchase of 111 Wall
Nightingale partnership closes on $175M purchase of 111 Wall
Extell Development chairman Gary Barnett with 555 Tenth Avenue and 524 East 14th Street (Credit: Barnett by Anuja Shakya, 555ten and StreetEasy)
Extell scores $700M refi for three Manhattan buildings
Extell scores $700M refi for three Manhattan buildings
Anna Castelini and 601 Lexington Avenue (Credit: LinkedIn and Andrew Moore via Flickr)
DeKalb Market Hall creator bringing new food hall to Midtown
DeKalb Market Hall creator bringing new food hall to Midtown
Wells Fargo, JPMorgan Chase and Citigroup each recorded a rise in second quarter profits in their consumer divisions (Credit: iStock)
Banks see uptick in mortgages, but remain wary ahead of potential Fed interest rate cut
Banks see uptick in mortgages, but remain wary ahead of potential Fed interest rate cut
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...