Citi Settlement Questioned, SAC Professional Seeks New Judge

Gavel

A Manhattan federal judge on Monday signalled he will not rubber-stamp Citigroup's proposed $590m settlement of a shareholder lawsuit accusing it of hiding tens of billions of dollars of toxic mortgage assets.

Reuters reports that U.S. District Judge Sidney Stein asked lawyers for the bank and its shareholders to address several issues at an April 8 fairness hearing, including requested legal fees and expenses of roughly $100m, and the absence of payments by former Citigroup executives.

Finally, the news agency reports that Michael Steinberg, the SAC Capital Advisors fund manager who was indicted last week on insider trading charges, has begun his criminal defense with an unusual goal: to find a new judge.

On Friday when Steinberg was indicted, his lawyer Barry Berke asked U.S. District Judge Richard Sullivan to allow the case to be randomly assigned to a new judge.

Berke claimed Sullivan had in a past insider trading case given prosecutors an easier burden to meet compared to rulings by two other judges. He called this a 'significant legal issue'.

Judge questions fairness of Citigroup $590 million settlement

SAC's Steinberg seeks new judge for insider trading case

 

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