SEC v. Citigroup Global Markets, Inc. Case No. 11 Civ 7387 (S.D.N.Y.): The Commission appealed the determination by District Court Judge Rakoff to not approve the proposed settlement in this case. The underlying action is the Commission’s latest market crisis case. Judge Rakoff declined to approve the proposed settlement noting that he did not have sufficient facts on which to evaluate the matter. While the Court was critical in its order regarding the fact that the settlement was based on neither admitting nor denying the allegations in the complaint, central to the Court’s conclusion was its view that there was a fundamental mismatch between the allegations of the complaint which alleged an intentional fraud and its charging sections which were based on negligence and the proposed settlement which was based on a small fine when viewed in the context of similar cases without offering any explanation for the apparent mismatch. In proceedings before Judge Rakoff the Commission chose not to offer an explanation. Rather, it argued essentially that the Court had a limited role and should defer to the decision of the agency.