February 2009
KBT&F Represents Clothier American Eagle Outfitters in Auction-Rate Securities Suit Against Citigroup
Marc E. Kasowitz,
Christopher P. Johnson,
Charles M. Miller,
Kanchana Wangkeo Leung
KBT&F filed a complaint against Citigroup Inc. alleging that the bank persuaded popular clothing company American Eagle Outfitters, Inc. to purchase auction-rate securities knowing full-well that the market for these types of instruments was set to collapse. The suit not only alleges that Citi tricked American Eagle into buying the securities by portraying them as “safe” and “liquid,” but also continued to represent them as such while internally planning to stop supporting the auction-rate securities market, thus contributing to its collapse. KBT&F partners Marc Kasowitz and Christopher Johnson, special counsel Charles Miller and associate are leading American Eagle’s representation.