Sophisticated investors won a $54 million arbitration award against Citigroup Global Markets Inc. related to the MAT leveraged municipal arbitrage hedge fund. It is by far the largest FINRA award rendered against Citi related to MAT. The award in the matter named Hosier v. Citi also includes $17 million in punitive damages and $3 million in attorneys’ fees.
We have been retained by many MAT investors and have numerous pending arbitrations against Citi related to MAT and it’s sister fund Falcon. This award is a potential game changer.
It’ll be interesting to see if Citi attempts to move to vacate the award in court, especially due to the punitive damages amount. It is very difficult to vacate an arbitration award, however firms have been more aggressive in challenging arbitration awards in recent years. Either way, this is one of the largest arbitration awards ever rendered against a broker dealer at FINRA and a tremendous sign for MAT/Falcon investors with outstanding claims.
Below is a link to the award on FINRA’s web site.
http://finraawardsonline.finra.org/viewdocument.aspx?DocNB=45768