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Federal appeals court dismisses Sheldon Solow’s lawsuit against Citigroup

January 15, 2013 04:30PM

Sheldon Solow and Vikram Pandit

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. [more]