Citigroup To Pay $13M In WorldCom Settlement

Law360, New York (April 7, 2006, 12:00 AM EDT) -- Investment bank Citigroup Inc. continues to feel the effects of the WorldCom accounting scandal Friday, after agreeing to pay $13.25 million to settle allegations that a former analyst misled investors with overly optimistic research.

The plaintiff, the University of California, sued Citibank in 2003 after opting out of a consolidated class action against WorldCom. Instead, it chose to target Citigroup over the actions of Jack Grubman, the analyst at the center of the scandal who was fired with a $30-million severance package.

“In this case, the...
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