Citi Board Sued Over Shoddy Mortgage Practices

Law360, New York (April 20, 2011, 9:35 PM EDT) -- A Citigroup Inc. shareholder filed a derivative suit in New York federal court Wednesday alleging that nearly two dozen current and former directors failed to implement adequate internal controls over the bank's faulty mortgage servicing and foreclosure processing practices.

The named defendants — which include the current board of directors of Citigroup as well as four former directors — breached their fiduciary duty beginning in at least February 2008 by failing to take necessary steps to strengthen its default loan-management and foreclosure procedures despite repeated warnings...
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