Braintree Laboratories, Inc. v. Citigroup Global Markets Inc., 09-2540

Denial of Preliminary Injunction In Plaintiffs' Suit Against a Broker Re Purchase of Auction-Rate Securities Affirmed

Braintree Laboratories, Inc. v. Citigroup Global Markets Inc., 09-2540, involved plaintiffs' suit against defendant broker, Citigroup Global Markets, Inc., claiming that  defendant misrepresented the purchased auction-rate securities as entirely liquid money market investments, seeking rescission of the transactions, restitution of the consideration paid, and damages.

In affirming the judgment of the district court, the court held that there is no abuse of discretion in the district court's decision to withhold preliminary injunctive relief.  Further, plaintiffs' appeal from the district court's order compelling arbitration is dismissed for lack of jurisdiction, as even assuming that pendent appellate jurisdiction could ever be exercised in the arbitrability context, there is no basis for exercising it in this case.

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• Read the First Cirucit's Full Decision in Braintree Laboratories, Inc. v. Citigroup Global Markets Inc., 09-2540