Trial lawyers specializing in personal injury and civil litigation
Fire and police pension system cannot sue Smith Barney and Citigroup Global Markets, Inc.
This week the Michigan Court of Appeals held that the City of Detroit Police and Fire Retirement System could not sue its investment advisers for fraud and breach of fiduciary duty. In its complaint, the System claimed that the Defendants misled it about the safety and wisdom of investing in collateralized debt obligation funds: none of us really understand what those are, but since 2008, we all know now that they sound poisonous and often involve a measure of broker self-dealing. The brokers had required the Retirement System to sign binding arbitration agreements at the outset of their retention, and the Court held that these agreements applied to successor corporations as well as the original consultants.