Citi Deferred Comp Case Gets Ca. Class Action OK

August 22, 2001( ? 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.

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 .