5th Circ. Denies Citi Coverage Of $263M Settlement

Law360, New York (August 8, 2011, 4:15 PM EDT) -- The Fifth Circuit ruled Friday that five insurers need not cover any part of Citigroup Inc.'s $263 million settlement of a class action and a Federal Trade Commission action claiming Citigroup's predecessor misrepresented the benefits of refinancing to customers.

The massive coverage dispute stems from a FTC action launched in March 2001 that claimed Associates First Capital Corp., which Citigroup acquired in 2000, misled customers into believing that their debts into a single loan secured by their homes would be advantageous. A few months after the...
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