Citigroup Ponies Up $730M in Investor Lawsuit
Denies misleading, says it settled to avoid more expenses
By Newser Editors and Wire Services
Posted Mar 19, 2013 9:48 AM CDT
This Oct. 13, 2011 file photo, shows a Citibank branch in New York.   (AP Photo/Mark Lennihan, File)

(Newser) – Citigroup has agreed to pay $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 investors' purchases were made from May 11, 2006, through Nov. 28, 2008. Citigroup Inc. denied the allegations and said in a statement late yesterday that it agreed to the settlement so it could get rid of 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," Citi said in a statement. Citigroup said that the proposed $730 million payment will be made from its existing litigation reserves. In January, Citigroup announced a settlement with federal regulators related to practices that resulted in illegal foreclosures. The bank took a fourth-quarter charge of $305 million to cover that agreement.

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Showing 3 of 4 comments
charlesncharge
Mar 22, 2013 2:25 PM CDT
The investors will get there money, but the home owners and the people who were bilked out of bank fees will get a chucky cheese gift card. "F" all banks and the crooks who run them. I often think of the kids who benefit from the wrong doings of the parents. They live this great life in the dark not knowing the world hates them and there crooked parent who runs the bank.
cmueller56
Mar 19, 2013 11:40 AM CDT
Shouldn't the fines be more than what they illegally made??????
Twiny
Mar 19, 2013 10:09 AM CDT
Any bank that shrugs off a $730 million dollar judgement as the price of doing business is doing business wrong. These huge Banks should be broken up and tightly regulated. Bring back the Glass-Steagall Act and shut these thieving corporations down!