Citigroup to pay $730 million to settle lawsuit
NEW YORK — 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.
The company said that the proposed $730 million payment will be made from its existing litigation reserves.
Its stock shed 2 cents to $46.22 in premarket trading on Tuesday.
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