Citigroup Hit for $54 Million in FINRA Arbitration Award Relating to MAT/ASTA Funds
Investors just won a $54.1 million award against Citigroup in a FINRA arbitration. The award involves investments pertaining to MAT and ASTA funds. The investments involved high risk leveraging and arbitrage of municipal bonds that purportedly lost over 70% of their value.
The award is so large that Citigroup is expected to move to vacate the award. The FINRA panel ordered that Citigroup must pay $17 million in punitive damages and $3 million in attorney’s fees.
It is believed that many Florida-based investors bought the MAT and ASTA funds and likewise suffered substantial losses.