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BRIEFLY

Banking & Finance

August 13, 1991|From Times Staff and Wire Reports

Salomon Inc. Class-Action Suit: Two investors filed a class-action suit against brokerage Salomon Inc. in U.S. District Court in New York, charging that the company "engaged in fraud" in connection with alleged bidding violations at Treasury security auctions. The suit, which names Salomon Chairman John Gutfreund among others, claims that Salomon stockholders were defrauded by the alleged violations and that the company has threatened its "good reputation." Salomon on Friday said it had uncovered irregularities in its bidding for Treasury bonds. A Treasury probe is focusing on allegations that Salomon may have attempted to corner the market, buying many more bonds than is allowed. Salomon stock plunged $3.125 to $31.625 a share Monday.

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