Answering a certified question of law, the Delaware Supreme Court ruled that holder claims asserted in a case in New York federal courts were direct because they belonged to stockholders who were allegedly harmed by their reliance on Citigroup’s supposed misstatements about the company’s financial health.
The U.S. Court of Appeals for the Second Circuit had asked for clarification after the District Court for the Southern District of New York dismissed the plaintiffs’ complaint for negligent representation and common law fraud.
