Citigroup Pays $590M To End Investors' CDO Action

Law360, New York (August 29, 2012, 2:35 PM EDT) -- Citigroup Inc. on Wednesday agreed to pay $590 million to settle a consolidated class action in New York federal court accusing the bank of duping investors about its risky exposure to collateralized debt obligations, marking one of the largest settlements stemming from the banking industry's subprime securities meltdown. 

U.S. District Judge Sidney H. Stein granted class certification and preliminary approval  for the settlement on Wednesday and set a hearing on the deal for Jan. 15. 

The plaintiffs, whose suits were consolidated in August 2008 and added...
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