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Citigroup settles shareholder lawsuit for almost $600 million
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Citigroup will pay almost $600 million to settle a lawsuit brought by its own shareholders. The complaint dates back to before the financial crisis. Investors said Citi concealed its exposure to risky mortgage assets.
Earlier this week, we learned the SEC is investigating Ally Financial for its own mortgage securities practices around that time. Suddenly it’s like the chickens of 2007 and 2008 are finally coming home to roost.
Our New York reporter Mark Garrison says Citigroup is not admitting to any wrongdoing, but they want to move on.
He says it’s not especially surprising that we’re just now getting around to resolving the legal issues surrounding the financial crisis. “The reality is, these cases are so complex they can take four or five year, or more to play out. The Citigroup case, for example — it had 40 million pages of documents to review.”
Hear more details in the audio above.