not a statement on the merits of any outstanding legal proceedings or potential regulatory action but sort a statement on the merits of any outstanding legal proceedings or potential regulatory action

Citigroup’ private bank has decided to pull its $187 million investment from SAC Capital Advisors LP, according to people familiar with the decision, the latest in a string of client defections that have occurred amid scrutiny of the hedge-fund firm. The decision “should not be construed as a statement on the merits of any outstanding legal proceedings or potential regulatory action” related to the scrutiny, a Citi spokeswoman said in a statement to The Wall Street Journal Thursday. Federal law-enforcement officials have sought to build an insider-trading case against SAC for years, but recent developments, including the arrest of Mathew Martoma, a one-time portfolio manager at an SAC unit, and the firm’s acknowledgement that it was notified by securities regulators it may soon face civil charges, have shaken some investors. “In the event these legal and regulatory matters are resolved favorably for Mr. Martoma and SAC, Citi Private Bank expects to reconsider admission of SAC’s funds to its hedge-fund platform,” the spokeswoman said in the statement, adding that the decision to redeem was made following the private bank’s standard procedures. [WSJ]