Disgorgement & Penalty Information
Resolutions
Enjoinment
Compliance Related Independent Consultant
Monetary Penalties:
Disgorgement
Individual:
$150,000,000.00
Shared:
Civil Penalty
Individual:
$150,000,000.00
Shared:
Independent Research ($75 million) and Investor Education ($25 million)
Individual:
$100,000,000.00
Shared:
Total Penalty
Individual:
$400,000,000.00
Shared:
Related Documents:
SEC Sues Citigroup Global Markets, Formerly Known as Salomon Smith Barney, and Former Research Analyst Jack B. Grubman for Research Analyst Conflicts of Interest Firm to Settle with SEC, NASD, NYSE, NY Attorney General, and State Regulators; Grubman to Settle with SEC, NASD, NYSE, and NY Attorney General
According to the SEC: "The Securities and Exchange Commission announced today that it has settled charges against Citigroup Global Markets Inc., formerly known as Salomon Smith Barney Inc. ("SSB"), a New York-based brokerage firm and investment bank, arising from an investigation of research analyst conflicts of interest. This settlement, and settlements with nine other brokerage firms, are part of the global settlement the firms have reached with the Commission, NASD, Inc., the New York Stock Exchange, Inc. ("NYSE"), the New York Attorney General, and other state regulators."
Complaint
According to the SEC: "In 1999, 2000, and 2001 (the "relevant period"), as described below, SSB issued research reports on two telecommunications ("telecom") companies that were fraudulent and issued research reports on several telecom companies that violated NASD and NYSE rules regulating their members' communications with the public (the "Advertising Rules")."
Court Approves Modifications to Global Research Analyst Settlement
On March 19, 2010, the SEC published a litigation release announcing that the Honorable William H. Pauley issued an order approving modifications to the final judgments entered against Citigroup Global Markets Inc. and the other firms covered by the Global Research Analyst Settlement.
LR-26434_03-cv-02945
05-Dec-2025
Litigation Release
Global Research Analyst Settlement
The Commission stated that it "consented to modifications to the October 2003 and September 2004 final judgments against settling firms still covered by the Global Research Analyst Settlement," which had imposed undertakings to address "potential conflicts of interest between equity research analysts and investment banking personnel."
court_doc159_03-cv-02945
05-Dec-2025
Court Docket Document
Notice Regarding Defendants' Rule 60(b) Motion to Modify Addendum A of Global Research Settlement
The Commission stated that Defendants "filed an unopposed motion pursuant to Rule 60(b) of the Federal Rules of Civil Procedure to modify final judgments" in the above-captioned cases. The Commission explained that, "[w]ithout adopting or joining Defendants in their motions," it "consents to the relief sought by the motions" and "agrees that the final judgments should be modified." The Commission further noted that the judgments expressly contemplated future modification and that FINRA Rule 2241 "addresses the same issues and concerns as the Judgment." Based on these circumstances, the Commission stated that it "believes modification of the Judgment is in the public interest."
