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Showing posts with the label Citigroup to pay $730M

Citigroup to pay $730M

Citigroup to pay $730M, Citigroup now agreed to pay all $730 million to settle a class-action lawsuit that claimed investors were misled by the bank's disclosures when they purchased its debt and preferred stock. The purchases were made from May 11, 2006 through Nov. 28, 2008. Citigroup denied the allegations and said in a statement late Monday that it agreed to the settlement so it could avoid further expenses and uncertainties that come along with drawn out litigation. "This settlement is another significant step toward resolving our exposure to claims arising from the financial crisis, and we look forward to putting this matter behind us," the company said. Citigroup said the proposed $730 million payment will be made from existing litigation reserves. The settlement will be reviewed by Judge Sidney Stein in the U.S. District Court for the Southern District of New York, where the lawsuit is pending. Citigroup has been undergoing a transformation since Michael Corbat t

Citigroup to pay $730M, Bondholder Lawsuit Issue

Citigroup to pay $730M, US banking giant Citigroup will pay $730m to settle a class-action suit by bondholders related to the 2008 financial crisis. The settlement is the latest step by Citi to put the ill-effects of the financial crisis behind it Photo: Getty Images The suit alleged Citigroup misled buyers of its bonds over its exposure to subprime mortgages and other high-risk securities ahead of and during the crisis, from May 2006 to November 2008. The settlement is the latest step by Citi to put the ill-effects of the financial crisis behind it. Citi was harmed more by the crisis compared with some peers, such as JP Morgan. The plaintiffs had argued that Citigroup misrepresented its exposure to mortgage-related assets, according to Bernstein Litowitz Berger & Grossman, the plaintiffs attorneys. Citi also understated the loss reserves for its mortgage loans and "falsely stated" that assets held off its balance sheet were of high value, Bernstein Litow