U.S. judge authorizes Citigroup $590 million settlement

New York City, Thu Aug 1, 2013– A federal judge offered last approval Thursday to a $590 million settlement by Citigroup Inc. that deals with an investor claim implicating the bank of concealing 10s of billions of dollars of harmful home loan properties.

” Although the $590 million healing is a portion of the damages that may have been won at trial, it is significant and sensible due to the threats dealt with if the action continued to trial,” U.S. District Judge Sidney Stein in Manhattan composed in a 48-page viewpoint.

The settlement deals with claims by investors who bought Citigroup shares from February 2007 to April 2008 that the New York-based bank misrepresented its direct exposure to securities called collateralized financial obligation commitments that were connected to home loan financial investments.

Citigroup lost $27.68 billion in 2008. The claim mentioned the plunge in the business’s stock cost from $47.89 at the start of the 4th quarter of 2007 to $2.80 by January 2009.

The settlement was revealed last August.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *