Allstate Settles $200M MBS Suit Against Citigroup

Law360, New York (May 30, 2013, 12:27 PM EDT) -- Allstate Insurance Co. agreed to settle the $200 million mortgage-backed securities lawsuit it had lodged against Citigroup Inc., according to court filings in New York state court Tuesday, two months after another judge preserved three Allstate suits against other banks.

The insurer filed a stipulation of discontinuance Tuesday, putting an end to Allstate's lawsuit pending before Judge Barbara R. Kapnick accusing Citigroup of packing the securities with shoddy mortgages that violated underwriting standards while telling investors like Allstate that they were safe and highly rated....
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