On May 17, 2011, Judge Stein of the Southern District of New York granted defendants’ motion to dismiss with prejudice this consolidated shareholder derivative action against current and former Citigroup officers and directors. Plaintiffs alleged that defendants breached their fiduciary duties of care and loyalty by allowing Citigroup to invest in mortgage-backed securities; concealing Citigroup’s exposure to those securities; committing securities fraud by making misleading statements regarding those securities; wasting corporate assets on the repurchase of Citigroup stock at inflated prices and the retirement package of the departing CEO; engaging in insider trading; and unjustly enriching themselves. The court granted defendants’ motion to dismiss, noting that plaintiffs had failed to demand that Citigroup pursue the claims itself before filing suit and holding that plaintiffs failed to adequately plead that such a demand would have been futile. Decision.