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Compliance October 8, 2002
Citi Deferred Comp Case Gets Ca. Class Action OK
August 22, 2001(PLANSPONSOR.com) ? A state judge in
California has granted class-action status to a suit brought
against Salomon Smith Barney (SSB), a unit of Citigroup by a
group of former employees.
Reported by Camilla Klein
The group of 500 former employees alleges that the company forced them to illegally forfeit some $35 million paid into Citigroup?s deferred compensation plan, when they left the firm.
California is the sixth state in which a case against Citigroup’s deferred compensation plan has been certified. The actions all focus on the group?s Capital Accumulation Plan, which allows eligible employees to receive up to a quarter of their pay in discounted Citigroup stock.
However, if employees leave before the end of three years, the money they put into the program is forfeited.
A similar suit was filed against Prudential Securities? Mastershare program earlier in the year.
Read more at Deferred Comp Approach Stems Tide .