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Hussain is hoping to block the settlement.
In his ruling, Judge Rakoff said that refusal was not enough to persuade him to block the settlement.
The city appealed Judge Hellerstein's authority to block the settlement, while continuing to work to reach a deal he would accept.
Hussain is trying to block the settlement, saying HP officials were wrongly absolved in the ill-fated acquisition of Autonomy for $11.1bn£6.6bnbn) in 2011.
But opponents said they would keep trying to block the settlement, which, they argued, would benefit only a small number of those with potential claims.
DealBook » Judge's Ruling Undermines Longstanding S.E.C. Policy | The decision by Judge Jed S. Rakoff to block the settlement between Citigroup and the Securities and Exchange Commission could set a precedent for harsher punishment on Wall Street, some experts say, according to The New York Times.
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Judge Rakoff originally blocked the settlement because it called for the bank to pay only $33 million without acknowledging any wrongdoing, another of the judge's pet peeves.
A federal judge who has blocked the settlement has also tried to get the bank to reveal more on the role played by Mr. Mayopoulos and the bank's other lawyers, and the bank and the S.E.C. will file new documents with that judge on Wednesday.
Jed Rakoff, the judge that blocked the settlement, criticized the SEC's enforcement practices at a hearing on the settlement earlier this month.
Rather than demanding more action in Syria and Iraq, Paul made clear on Monday that his focus was blocking the settlement of Syrian refugees in the U.S. .
But his move in August to block the Merkin settlement came more than three years after Mr. Schneiderman's predecessor, Andrew M. Cuomo, now New York's governor, brought his own lawsuit against Mr. Merkin in April 2009, claiming violations of state law.
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