Citigroup Pays ATD Executives Again in $590 Million Deal

Citigroup Inc. paid $680 million in cash and stock to David Whitcomb and other shareholders of Automated Trading Desk LLC when it bought the firm in 2007. Five years later, the bank will have to pay them again.

ATD founder Whitcomb, 69, and other former investors led a class-action lawsuit against Citigroup, claiming executives concealed toxic assets from shareholders and caused the stock to plunge in value. The bank, the third-biggest in the U.S., agreed to pay $590 million to end the claims, which would be among the biggest settlements by a Wall Street firm in the aftermath of the financial crisis.