Citing ‘Legal Error,’ S.E.C. Says It Will Appeal Rejection of Citigroup Settlement

The Securities and Exchange Commission said on Thursday that it would appeal a federal court decision that harshly rejected a settlement between the commission and Citigroup over securities fraud charges related to the financial crisis. In a statement accompanying a filing in Federal District Court in New York, the agency cited “legal error” in the decision in late November and said it would ask the United States Court of Appeals for the Second Circuit to overturn the opinion of Judge Jed S. Rakoff. In the ruling, the judge rejected an agreement for Citigroup to pay $285 million and accept an injunction against future violations of an antifraud provision of federal securities laws.
Read more in the New York Times here.