Legal News

Citigroup Agrees to Settlement Worth $730 Million
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

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.

  
What
Where


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.

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.

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!!




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.





 

RELEVANT JOBS

Paralegal / Legal Assistant

USA-NY-Staten Island

STATEN ISLAND PLAINTIFFS PERSONAL INJURY LAW FIRM IS SEEKING A FULL TIME/PART TIME PARALEGAL/LE...

Apply now

Attorney

USA-WA-Walla Walla

When the COVID crisis hit our state, we continued serving clients in our community. We are...

Apply now

Associate Attorney

USA-FL-Orlando

A/V Rated Downtown Orlando Law firm of Fisher Rushmer, P.A. is seeking an associate with 2 - 6 years...

Apply now

Legal Extern / Litigation Law Clerk

USA-VA-Alexandria

Old Towne Associates, P.C. (Alexandria, VA) Legal Extern Openings - Class of 2021 and 2022 ...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Mergers and Acquisitions Associate Attorney

USA-CA-San Diego

San Diego office of a BCG Attorney Search top ranked law firm seeks Mergers and Acquisitions Associa...

Apply Now

Senior Wealth Management Group Associate Attorney

USA-CA-San Diego

San Diego office of our client seeks Senior Wealth Management Group Associate Attorney with 9 years ...

Apply Now

Bankruptcy Associate Attorney

USA-CA-Los Angeles

Los Angeles office of a BCG Attorney Search top ranked law firm seeks Bankruptcy Associate Attorney ...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top