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
- Entrepreneurs Chase Social Media
- Schedule packed with talent at the Fox
- European Car Sales up First Time in 20 Months
- I never set out to be a role model but it's great to be one ; IN THE HOTSEATBetter known by his stage name Wretch 32, Jermaine Sinclair is a 28-year-old rapper from London. In 2011 his debut album Black and White sold over a million copies and scored three top five singles. His latest single Blackout was released this week
- Austin musicians point to a variety of reasons to appreciate McCartney
- Manila's Hollywood Week
- Financial Times Twitter, Email Hacked
- Apple's iPhones, iPads Approved for Military Use, Sir Yes Sir!
- SINCE YOU ASKED [Pittsburgh Tribune-Review (PA)]
- Promoter McLean 'provided more musical joy than Dylan and Prince combined'