Stephen Plotnick Quoted by New York Times on Stoker Case
Litigation partner Stephen Plotnick was quoted in the July 17 Dealbook column of the New York Times concerning the case of SEC v. Stoker. According to the SEC’s complaint, Stoker’s employer, Citigroup, created and sold a collateralized debt obligation for the undisclosed purpose of selling it short. Stoker was the lead manager for the deal. Citigroup and the SEC have sought to settle related allegations filed against Citigroup in a separate case, but the settlement was rejected by the District Court and is currently on appeal to the Second Circuit. Stoker has continued to fight the SEC’s claims that his conduct violated federal securities laws, and the trial commenced on July 16. Plotnick notes that the SEC “has been under a great deal of pressure to bring cases in the wake of the financial meltdown” and most likely pursued this one because it believes that it has a “strong case.”
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