The case of the day is Fiorilla v. Citigroup Global Markets, Inc. (S.D.N.Y. 2018). John Leopoldo Fiorilla brought an arbitration against Citigroup in 2010. Fiorilla, a self-described “unsophisticated” investor, opened an account with Citi in 2006 to manage his $19.5 million life savings. He alleged that through “mismanagement and malfeasance,” Citi “eviscerated” his savings, which in the end were worth just $20,000. In 2012, Fiorilla’s lawyer accepted Citi’s offer to settle for $800,000, subject to negotiation of a mutually agreeable settlement agreement. But the parties disputed whether a real settlement had been reached or whether there were still material terms to be worked out. The tribunal rejected Citi’s motion to enforce the settlement agreement and its motion to terminate the arbitration based on the…

+Read more