Citi Statement on Citigroup Bond Class Action Suit
NEW YORK--(BUSINESS WIRE)-- Citigroup Inc. today announced it has agreed, subject to court approval, to settle a class action lawsuit brought on behalf of investors who purchased Citigroup debt and preferred stock during the period May 11, 2006, through November 28, 2008. Under the terms of the proposed settlement, Citi would pay a total of $730 million. Plaintiffs in the class action had contended, among other things, that they were misled by misstatements and omissions in the company's disclosures during this period. Citigroup denies the allegations and is entering into this settlement solely to eliminate the uncertainties, burden and expense of further protracted litigation. The amount to be paid under the proposed settlement is covered by Citi's existing litigation reserves.
The company released the following statement:
"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 is a fundamentally different company today than at the beginning of the financial crisis. We have overhauled risk management and reduced risk exposures, while shedding assets and businesses that are not core to our strategy. We are completely focused on our clients and generating consistent, high-quality earnings."
The proposed settlement will be reviewed by the Hon. Sidney Stein in the United States District Court for the Southern District of New York, where the class action is pending. Further information concerning the details of the settlement are available from the court's docket, In Re Citigroup Inc. Bond Litigation, 08 Civ 9522 (SHS), or from plaintiffs' lead counsel, Bernstein Litowitz Berger & Grossmann LLP, www.blbglaw.com.
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
Additional information may be found at www.citigroup.com Twitter: @Citi YouTube: www.youtube.com/citi Blog: http://blog.citigroup.com/ Facebook: www.facebook.com/citi LinkedIn: www.linkedin.com/company/citi
Shannon Bell, 212-793-6206
Mark Costiglio, 212-559-4114
Susan Kendall, 212-559-2718
Fixed Income Investors:
Peter Kapp, 212-559-5091
KEYWORDS: United States North America New York
The article Citi Statement on Citigroup Bond Class Action Suit originally appeared on Fool.com.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.