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ASTA Summary
ASTA, MAT and Falcon were private placements sold by Citigroup Global Markets Inc. and Citicorp Investment Services. ASTA and MAT engaged in an extraordinarily complex strategy known as leveraged municipal arbitrage. This same strategy was also a principal component of the Falcon series of funds. The ASTA, MAT and Falcon funds were substantially insolvent by February 2008. Their insolvency was preceded by a period of extreme volatility that climaxed, at least for a time, in August 2007. The ASTA, MAT and Falcon investors who were not advised to, or did not instruct their Citi financial advisors to redeem their shares, lost the majority of their investment principal. Because of the extraordinary complexity of the leveraged municipal arbitrage strategy, most investors were dependent upon their financial advisor’s superior knowledge, sophistication, and ability to conduct ongoing due diligence in order to decide whether to redeem. Investors who did not redeem lost the majority of their remaining capital. Some investors may have valid claims against Citigroup for losses suffered as a result of not submitting redemption instructions during the period from August 2007 – November 2007. Those claims may be pursued before a FINRA arbitration panel. This firm has represented investors throughout the United States, and is permitted to do so in most states. For further information, please call us at (800) 718-1422.