Citigroup Inc. v. AHW Investment Partnership, MFS, Inc.

STRINE, Chief Justice:

I

The U.S. Court of Appeals for the Second Circuit has certified to this Court the following question of law arising from an appeal from a decision issued by the U.S. District Court for the Southern District of New York:

Are the claims of a plaintiff against a corporate defendant alleging damages based on the plaintiffs continuing to hold the corporation’s stock in reliance on the defendant’s misstatements as the stock diminished in value properly brought as direct or derivative claims? 1

The answer to that question, as explained below, is that the holder claims in this…