Free Market Evaluation - Send us your resume and we will give you free feedback
Popeyes Shift Manager Fired for Allowing Gunman to Take $400
Popeyes Shift Manager Fired for Allowing Gunman to Take $400
Uber Sued for Refusing to Taxi Guide Dogs of the Blind
Uber Sued for Refusing to Taxi Guide Dogs of the Blind
Comcast and Time Warner to Discuss Merger with Department of Justice
Comcast and Time Warner to Discuss Merger with Department of Justice
Upon Net Neutrality Rules Being Published, Legal Challenge Filed
Upon Net Neutrality Rules Being Published, Legal Challenge Filed
Legal Job Listings
Download PDF

Citigroup Agrees to Settlement Worth $730 Million View Count: 43

It was announced on Tuesday that Citigroup Inc will pay $730 million to settle a class action lawsuit filed on behalf of investors. The investors claim that they were misled by the disclosures of the company, according to Reuters.

The investors made purchases of the bank’s debt and preferred stock from 2006 to 2008. They claim that there were omissions and misstatements made in the disclosures, according to Citigroup, which released a statement about the proposed settlement.

The bank was understating loss reserves, according to investors in the class action lawsuit, for its high-risk residential mortgage loans. The bank was also accused of falsely stating risky assets were of high credit quality, according to the firm that represented pension funds and other investors in the lawsuit. The firm in the case is that of Bernstein Litowitz Berger & Grossman.

Get JD Journal in Your Mail
Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Citigroup said that it entered into the settlement in order to end the litigation, but it still denied the allegations made against it. The bank said that settlement is going to be covered by current existing litigation reserves.

“This settlement is another significant step toward resolving our exposure to claims arising from the financial crisis,” the bank said in its statement.

The law firm said that the class action was filed on behalf of purchasers of 48 offerings of preferred stock and bonds. The settlement will be reviewed by U.S. District Court Judge Sidney Stein in New York.

Citigroup Agrees to Settlement Worth $730 Million by

Tagged: , ,

Posted by on March 19, 2013. Filed under Business News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

 

 

Job of the Day
Associate Attorney
USA-NY-Riverhead
Trusts and estates attorney with minimum of 3-5 years of experience in estate planning and drafting trust and estate documents.  Real estate transactional experience a plus.  Salary commensu...


Apply now

Related Posts: