Citigroup Announces Settlement; Opt-Out Period Begins
Citigroup announced on Aug. 30, 2012 that it has agreed to pay $590 million to settle a class action lawsuit brought by shareholders who contended that they had been misled about the bank’s exposure to subprime mortgage debt. The lawsuit, In re Citigroup Inc. Securities Litigation, 07-CV-9901, was originally filed in November 2007, and alleged that the bank and several of its former executives and directors failed to disclose the bank’s large holdings in collateralized debt obligations that were tied to mortgage securities until November 2007, when it took a multibillion dollar write-down. This debt was later written down by tens of billions of dollars more. The complaint alleged that Citigroup had concealed its holdings’ deteriorating value through improper accounting practices.
The fairness hearing regarding the class settlement is set for Jan. 15, 2013. Class members, however, only have until Dec. 2, 2012 to opt-out.
For more information about how this settlement could affect your governmental plan, please contact Matt Fornshell at email@example.com or (614) 462-1061 or any member of Ice Miller's Employee Benefits Group.