Manhattan Supreme Court Justice Charles E. Ramos last week rejected a proposed settlement and attorney fees in a shareholder derivative action brought against Citigroup’s board of directors.
In Carroll v. Weill, 600645/06, shareholder Sharon Carroll alleged the board breached its fiduciary duty, mismanaged the company and wasted corporate assets by failing to implement adequate internal controls. This, she claimed, led to a series of improper financial arrangements with companies including WorldCom, Enron, Adelphia Communications and Parmalat.
