December 8, 2005
Citigroup Wins Case Versus Disgruntled Investor
Today, a Citigroup spokesman stated that a National Association of Securities Dealers panel rejected a $900 million claim brought by Donald Sturm. Mr. Sturm, a wealthy Colorado investor, argued that he held onto nearly 21 million WorldCom shares based upon Citigroup analyst Jack Grubman's recommendation.
Citigroup's argument was that Mr. Sturm was a knowledgeable investor and should take responsibility for his decision to hold his shares of WorldCom. Mr. Sturm attempted to argue a direct link to Mr. Grubman's research and to prove that his research was flawed.
Since arbitration hearings are private and the panel did not disclose the reasons for its ruling, we are left to speculate why it sided with Citigroup.
Reuters article can be found here.
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