Citigroup, Ex-Analyst Must Face Lawsuit

Citigroup Inc., Chairman Sanford Weill and former analyst Jack Grubman failed to win dismissal of a lawsuit alleging the firm tailored research on AT&T; Corp. to gain investment banking business.

U.S. District Judge Gerard Lynch rejected a request by Salomon Smith Barney, the investment banking unit of the world’s biggest bank, to throw out the civil case, allowing it to proceed toward trial. Investors who brought the suit say Salomon issued overly optimistic reports in a bid to win millions of dollars in fees underwriting an offering for AT&T; Wireless.