Citi Statement on Citigroup Bond Class Action Suit
NEW YORK -- March 18, 2013
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
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