BLB&G Announces $730 Million Cash Recovery for Citigroup Bond and Preferred
Securities Purchasers -- BLB&G Has Recovered Nearly $4
Billion for Investors in Last 5 Months
NEW YORK, NY -- (Marketwire) -- 03/18/13 -- Bernstein Litowitz
Berger & Grossmann LLP ("BLB&G") today announces that the parties in
the In re Citigroup, Inc. Bond Litigation, Master File No. 08-cv-9522
(S.D.N.Y.) have reached an agreement to settle all claims in exchange
for a payment of $730 million in cash. The parties resolved this
high-profile matter after more than four years of protracted
litigation, which included the denial of defendants' motions to
dismiss and a massive and intensive discovery effort that involved
more than 70 depositions.
The Citigroup Bond Litigation was filed on behalf of purchasers of 48
offerings of Citigroup preferred stock and bonds issued from 2006
through 2008. The action contends that Citigroup conducted a series
of public offerings prior to the collapse of the subprime mortgage
market based on offering documents that contained material
misrepresentations and omissions regarding Citigroup's exposure to
billions of dollars in mortgage-related assets. Plaintiffs also
allege that Citigroup materially understated the loss reserves for
its portfolio of high-risk residential mortgage loans, and falsely
stated that risky assets held in off-balance sheet entities known as
structured investment vehicles ("SIVs") were of high credit quality.
It wasn't until November 2008, when the bank received substantial
government assistance, that investors learned the full truth about
Citigroup's financial condition.
BLB&G is the Court-appointed Bond Counsel for the Class representing,
among others, Arkansas Teacher Retirement Systems and Louisiana
Sheriffs' Pension and Relief Fund. The settlement is subject to Court
approval, and the case is pending before Judge Sidney H. Stein of the
United States District Court of the Southern District of New York.
Former United States District Judge Layn R. Phillips served as
mediator in helping to facilitate the resolution of this case.
Nearly $4 billion recovered for investors in last 5 months
In the past five months alone, BLB&G has recovered nearly $4 billion
in securities class actions on behalf of investors who have been
victimized by fina
ncial wrongdoing. In addition to the $730 million
settlement announced today, in October, on the eve of trial in In re
Bank of America Securities Litigation, BLB&G obtained a settlement of
$2.425 billion -- the sixth largest securities recovery in history.
Last month, again just weeks before trial and after almost five years
of litigation, BLB&G obtained $688 million in two actions: In re
Schering-Plough Corporation/ENHANCE Securities Litigation, ($473
million); and In re Merck & Co., Inc. Vytorin/Zetia Securities
Litigation ($215 million). These settlements are also subject to
About the firm
One of the world's leading securities litigation firms, BLB&G is
responsible for recovering over $5 billion for investors in actions
against Wall Street banks and other major financial institutions
related to the subprime mortgage meltdown. Since the firm's founding
in 1983, BLB&G has obtained over $25 billion in recoveries for
investors and achieved precedent-setting corporate governance reforms
on behalf of its institutional investor clients. Regularly entrusted
by clients, and regularly appointed as lead counsel by courts in
major securities class actions, the firm is widely recognized by
industry observers for its legal excellence and achievements
("consistently achieving the highest returns for investors" -- The
National Law Journal; "the best advice in the field" -- Chambers USA;
"one of the best bar none...impressive achievements and excellent
reputation" -- Benchmark Litigation).
Visit www.blbglaw.com to learn more.
Marketing and Communications Director
Bernstein Litowitz Berger & Grossmann LLP
1285 Avenue of the Americas
New York, NY 10019
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