Citigroup's $285 million settlement with the Securities and Exchange Commission (SEC) was thrown out by a New York federal judge Monday, citing limited facts and transparency as barriers.
According to The New York Times, US District Judge Jed Rakoff wrote in the case, SEC. v. Citigroup Global Markets:
“An application of judicial power that does not rest on facts is worse than mindless, it is inherently dangerous. In any case like this that touches on the transparency of financial markets whose gyrations have so depressed our economy and debilitated our lives, there is an overriding public interest in knowing the truth.”
Last month, Citigroup agreed to pay $285 million to end SEC charges that allege the bank misled investors in a $1 billion derivatives deal connected to the housing market.