Citigroup's Sale of Enron Related Credit Linked Notes Investigated by Wechsler Harwood
PRNewswire
NEW YORK
Feb 8, 2002
The law firm of Wechsler Harwood Halebian & Feffer LLP ("Wechsler Harwood") is investigating reports that Citigroup Inc. may have misled investors as to Enron's true financial condition in connection with Citigroup's sale of $1.4 billion in credit-linked notes which were directly tied to Enron's financial condition and performance. Citigroup sold the $1.4 billion of notes in order to protect Citigroup's huge lending liability position with Enron Corp. The notes were sold between August 2000 and May 2001. The largest sale of the notes occurred in May 2001 when $885 million were issued.
Under the terms of the notes, upon Enron's bankruptcy, the funds that purchasers invested to acquire the notes became the property of Citigroup, and note purchasers were relegated to Citigroup's position as a creditor in the Enron bankruptcy proceeding. As a tier one lender to Enron, Citigroup was likely privy to negative and adverse Enron financial information not available to other investors at the same time that the notes were sold, and Citigroup may have protected its own financial position at the expense of note purchasers who will likely suffer very substantial losses. Wechsler Harwood is seeking additional information concerning these issues, and information as to what note purchasers were told with respect to Enron's financial condition. Wechsler Harwood is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded shareholders and investors. The Wechsler Harwood website (http://www.whhf.com/) has more information about the firm.
If you would like to discuss the matter further or have any additional information please contact John Halebian, Esq. at jhalebian@whhf.com, or contact:
Wechsler Harwood Halebian & Feffer LLP 488 Madison Avenue 8th Floor New York, New York 10022 Phone: 877-935-7400 (Toll Free) Ramon Pinon, IV, Wechsler Harwood Shareholder Relations Department: rpinoniv@whhf.com.
SOURCE: Wechsler Harwood Halebian & Feffer LLP
Contact: Wechsler Harwood Halebian & Feffer LLP, +1-877-935-7400, or
Ramon Pinon, IV, Wechsler Harwood Shareholder Relations Department,
rpinoniv@whhf.com
Website: http://www.whhf.com/