Citigroup Inc has agreed to pay 730 million dollars in compensation to a group of investors who say they were misled by the bank in the years leading up to the financial crisis.
The bank agreed the out-of-court settlement late Monday in New York, without admitting any wrongdoing, it said in a statement, closing a lawsuit that has been running for more than four years.
The investors claim Citigroup made misstatements and omissions in selling them debt and preferred stock between March 2006 and November 2008.
This misrepresented the investors' exposure to the subprime mortgage market, they argued, causing them significant losses when that sector collapsed in the subsequent crisis.
Citigroup, the third-largest US bank by assets, was bailed out to the tune of 45 billion dollars by the government during the crisis. It has since returned to profit and repaid the bailout.
Monday's deal still requires approval by the court. The compensation would be covered by litigation reserves, the bank said.
Most Popular Stories
- Fed Committee Optimistic About Growth Prospects
- Musk Donates to Tesla Museum
- Terrific World Cup Ends with Marquee Final in Brazil
- U.S.' No. 2, No. 3 Tobacco Cos in Merger Talks
- Ex-CalPERS Chief Admits Receiving Bribes
- Freshman Frustrations in Congress
- Crumbs to Be Reopened by Chicago-based Investor, Owner of Dippin' Dots
- Samsung Earnings Hit by Slowing China Sales
- Pau Gasol Turns Down Lakers' Offer
- Sales Show Samsung Needs Next Big Thing