Zwerling, Schachter & Zwerling, LLP, On Behalf of Lead Plaintiff, Files Consolidated Amended Complaint in In re Citigroup Auction Rate Securities Litigation

August 26, 2008

NEW YORK - Pursuant to the Order of the United States District Court for the Southern District of New York, on August 25, 2008 Zwerling, Schachter & Zwerling, LLP ("Zwerling Schachter") filed a Consolidated Amended Complaint (the "Complaint") in In re Citigroup Auction Rate Securities Litigation, Master File No. 08 Civ. 3095 (LTS)(FM). The Complaint is brought on behalf of investors who purchased auction rate securities underwritten and/or sold in auctions managed by defendants Citigroup Inc. (NYSE: C), Citigroup Global Markets, Inc. and Smith Barney ("Citigroup ARS").

The Complaint alleges that from August 1, 2007 through February 11, 2008 (the "Class Period") defendants manipulated the market for Citigroup ARS by fostering the illusion that a valid market existed where buyers and sellers came together, with supply and demand in balance, allowing for the successful completion of auctions of Citigroup ARS. In fact, no such balance existed. During the Class Period, defendants routinely and regularly intervened to ensure that their auctions did not fail. When defendants ceased intervening into auctions for Citigroup ARS, the auctions failed in their entirety, and the Citigroup ARS market came to a sudden and immediate halt. Investors were left with billions of dollars of Citigroup ARS and no market to sell their positions.

The Complaint alleges that defendants have acted in violation of §§10(b) and 20(a) of the Securities Exchange Act of 1934, Securities and Exchange Commission Rule 10b-5, and §206 of the Investment Advisers Act of 1940 (the "1940 Act"). Further, the Complaint alleges that defendants have breached their fiduciary duties to certain Citigroup ARS purchasers and have violated the Deceptive Practices Acts of Arizona, Florida, Illinois, Maryland, Wisconsin, Colorado, Kentucky, New Mexico, Nebraska, Idaho, Delaware, South Dakota and North Dakota.

The Complaint can be viewed by visiting Zwerling Schachter's website at www.zsz.com. If you wish to discuss this action or have any questions concerning your rights and interests with respect to this matter, please contact Zwerling Schachter (Willy Gonzalez) at 1-800-721-3900 or by e-mail at ARS@zsz.com.
Zwerling Schachter concentrates in prosecuting class actions nationwide on behalf of investors. The firm currently plays a leading role in numerous major securities and complex commercial litigations pending in federal and state courts and has offices in New York City, Garden City, New York, and Seattle, Washington. Zwerling Schachter has been recognized by courts throughout the country as highly experienced and skilled in complex litigation, particularly with respect to federal securities class action litigation.
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