Securities and Exchange Commission v. Citigroup Global Markets
United States Court of Appeals for the Second Circuit
752 F.3d 285 (2014)
Citigroup Global Markets (defendant) offered a fund to investors, stating that the fund’s investment portfolio was chosen by independent experts. The Securities and Exchange Commission (SEC) (plaintiff) brought an enforcement action against Citigroup, alleging that Citigroup itself actually chose a significant amount of the fund’s portfolio. The SEC alleged that Citigroup chose a number of negatively projected stocks that it had shorted. The SEC and Citigroup agreed to a consent decree. As part of the consent decree, the SEC required Citigroup to disgorge the $160 million in profits it made off of its conduct and to pay a civil penalty of $95 million. In addition, the consent decree contained an injunction, enjoining Citigroup from violating securities laws. The SEC and Citigroup presented the consent decree to the district court for approval. The district court declined to approve the consent decree. The district court assessed whether the consent decree was adequate. The court ruled that the consent decree was inadequate because it did not include a factual basis for the truth of the claims in the complaint. The parties appealed.
Rule of Law
Holding and Reasoning (Pooler, J.)
Concurrence (Lohier, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 724,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 724,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 45,600 briefs, keyed to 983 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.