Citigroup Inc., the third-largest U.S. bank by assets, lost an arbitration ruling that will force it to pay almost $12 million in damages in a case against actor Larry Hagman.
A Financial Industry Regulatory Authority arbitration board ruled that Citigroup must pay $1.1 million in compensatory damages and must donate $10 million of punitive damages to charities of Hagman’s choice, according the ruling. The bank must also pay about $460,000 for Hagman’s attorney fees and other costs.
The arbitration board said it enforces punitive damages under its authority if a company “has engaged in serious misconduct,” according to the ruling. The board didn’t provide a reason for its decision.
“We are disappointed and disagree with the panel’s findings, and we are reviewing our options,” said Alexander Samuelson, a spokesman for New York-based Citigroup. Philip Aidikoff, one of Hagman’s lawyers, didn’t return a call for comment.
The claim, filed in May 2009, related to “unspecified securities” in Hagman’s accounts and the purchase of a life insurance policy. It was against the Smith Barney brokerage, which was held within Citigroup Global Markets before Morgan Stanley purchased a controlling stake in a joint venture with Smith Barney last year.
Hagman has appeared in movies and television shows for more than 50 years, according to the website IMDB.com. He played Anthony Nelson in the TV show “I Dream of Jeannie” and J.R. Ewing in the show “Dallas.”