Citigroup has agreed to pay $730 million to settle a class-action lawsuit that claimed investors were misled by the bank’s disclosures when they purchased its debt and preferred stock.
The investors’ purchases were made from May 11, 2006 through Nov. 28, 2008.Citigroup Inc. denied the allegations and said in a statement late Monday that it agreed to the settlement so it could get rid of further expenses and uncertainties that come along with drawn out litigation.
“This settlement is another significant step toward resolving our exposure to claims arising from the financial crisis, and we look forward to putting this matter behind us,” the New York company said in a statement.
Citigroup said that the proposed $730 million payment will be made from its existing litigation reserves. The settlement will be reviewed by Judge Sidney Stein in the U.S. District Court for the Southern District of New York, where the lawsuit is pending.
TVNL Comment: Every one of these 'settlements' is paid for with taxpayer money that the banks received because they were 'too big to fail.' No jail time. No guilty plea. Just lunch money fines. Nice to be in the one percent.