Citigroup CDO cases to go ahead

A US judge yesterday dismissed part of a Citigroup shareholder lawsuit alleging securities fraud, but allowed the investors to pursue some of their claims against the bank. Citigroup shareholders claim that the bank knowingly misled them about the value of various securities it sold and the risk related to those securities. US Judge Sidney Stein ruled yesterday that shareholders could pursue their lawsuit against the bank and some former officials, but only for claims related to the bank’s collateralised debt obligations (CDOs) between February 2007 and April 2008.