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
- Americans Still Pessimistic Despite Economic Growth
- Apple to Unveil New Items on Sept. 9
- Bogdanovitch Delivers Laughs With 'She's Funny'
- Labor Day Travel Up, Gas Prices Down
- Nintendo Launching 'Amiibo' Toy-game Franchise
- U.K. Raises Terror Threat Level to 'Severe'
- Parra Joins Exclusive Club of Hispanic CEOs
- Axxis Solutions Appoints Benites as CEO
- Obama Puts Ukraine Violence on Russia
- Friends Followed Similar Paths to Violent Jihad