(Reuters) - The top market regulator is appealing a judge's rejection of a major Citigroup Inc civil securities fraud settlement, according to court papers filed on Thursday.
The $285 million settlement was rejected by U.S. District Judge Jed Rakoff last month as "pocket change" for CITIGROUP (C.NY)and he criticized the U.S. Securities and Exchange Commission's policy of settling lawsuits without defendants admitting or denying any wrongdoing.
In a separate statement following the filing, the U.S. Securities and Exchange Commission said: "We believe the district court committed legal error by announcing a new and unprecedented standard that inadvertently harms investors by depriving them of substantial, certain and immediate benefits."
The case is SEC v Citigroup Global Markets Inc, U.S. District Court, Southern District of New York, No. 11-07387.
(Reporting by Grant McCool; editing by Carol Bishopric)
