Federal judge OKs $730M settlement between Citigroup and investors

One of the largest settlements of investor litigation stemming from the financial crisis has been settled

U.S. District Judge Sidney Stein in Manhattan has approved a $730 million settlement between Citigroup Inc. and investors who had accused the bank of lying about the quality of investments in four-dozen bond and preferred stock-offerings. The decision comes the just weeks after Stein approved a similar $590 million settlement for Citigroup shareholders, according to Reuters.

Plaintiffs in the case, which include the Arkansas Teacher Retirement Systems and Louisiana Sheriffs’ Pension and Relief Fund, alleged that “Citigroup made materially untrue or misleading statements or omissions in public offering materials associated with 48 different bond issuances between May 2006 and November 2008,” according to court documents.

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Erin E. Harrison

Erin E. Harrison is the Editor in Chief of InsideCounsel magazine. Harrison’s professional background includes extensive expertise in both print and online media, highlighted by...

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