Citigroup Agrees to Pay $95.5 Million to Buy Back Frozen Auction Rate Securities (Ars)
Pursuant to a federal bankruptcy judge’s approval, Citigroup will pay $95.5 million to buy back auction rate securities (ARS) it sold to LandAmerica 1031 Exchange Services, Inc., a wholly owned subsidiary of LandAmerica Financial Group. The exchange company and its parent filed for bankruptcy and folded in November 2008. Some 450 clients had placed money with LandAmerica Exchange, which invested it in auction rate securities. The settlement of $95.5 million on $120.3 million worth of the securities represents roughly an 80% return.
According to the liquidating trustee, negotiations are ongoing to recover $50 million worth of auction rate securities sold to LandAmerica Exchange by SunTrust Robinson Humphrey.
If you have suffered losses in auction rate securities (ARS), please contact our securities law firm for a confidential, no obligation consultation at 1-800-259-9010.