Facts

Claimants Nickie Silk, Evan Gardner, Candi Bleifer, Scott Bleifer, Bruce Pompan, and Byrdie Lifson on behalf of The Nickie Lee Silk Declaration of Revocable Trust, The Nickie Lee Silk 2004 Trust, The Bleifer Family Trust, and The Pompan Family Trust, filed a claim against respondent Citigroup Global Markets Inc. relating to a purchase of Mat, a leveraged municipal arbitrage fund.

CLAIMANTS' CONTENTIONS:
Claimants alleged breach of fiduciary duty, breach of written contract, constructive fraud, violations of FINRA, NASD, and NYSE rules, unsuitability, failure to supervise and secondary liability, and respondeat superior.

Damages

Claimants sought general and compensatory damages in the amount of no less than $1,818,990, rescission, lost opportunity costs, fees, commissions, and renumerations, punitive damages, interest, attorney fees and costs.

Result

Citigroup was found liable and ordered to pay as follows: The Nickie Lee Silk Declaration of Revocable Trust was awarded compensatory damages of $291,000 plus 10 percent interest; The Nickie Lee Silk 2004 Trust was awarded compensatory damages of $116,000 plus 10 percent interest; The Bleifer Family Trust was awarded compensatory damages of $431,000 plus 10 percent interest; The Pompan Family Trust was awarded compensatory damages of $174,000 plus 10 percent interest.

Other Information

The dissenting opinion argued that claimants were entitled to damages equal to 100 percent of the losses incurred by claimants, plus 10 percent from the date of the investments. ARBITRATORS: Marc S. Joseph, Morris S. Getzels, Larry Edmonson.