Securities and Exchange Commission v. Citigroup Global Markets

After the SEC (plaintiff) alleged Citigroup (defendant) misrepresented that a fund's portfolio was chosen by independent experts when Citigroup itself had selected a substantial share of negatively projected stocks it had shorted, the parties agreed to a consent decree requiring Citigroup to disgorge $160 million in profits, pay a $95 million penalty, and accept an injunction against future securities-law violations; the district court declined to approve the decree, finding it inadequate for lacking a factual basis establishing the truth of the SEC's claims.