WSJ: Citi Agrees to Pay $730MM on Debt Suits
The Wall Street Journal reported that Citigroup agreed to pay $730 million to settle claims that it misled investors in four dozen bond and preferred-stock offerings over more than two years.
WSJ said that plaintiffs alleged Citigroup misled them about its possible exposure to losses on securities backed by home loans, understated its loss reserves and said some assets were of higher credit quality than they actually were. Citigroup said it did nothing wrong and settled the suit to avoid the cost and trouble of extended litigation, WSJ reported.
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