Citigroup Strikes $730M Deal In Long-Running Investor Suit

Law360, Los Angeles (March 18, 2013, 9:45 PM EDT) -- Citigroup Inc. will pay $730 million to settle an investor class action alleging it misled purchasers about its exposure to collateralized debt obligations backed by subprime assets, according to a settlement agreement filed Monday.

The settlement, if approved, would end four years of protracted litigation arising from allegations that Citigroup conducted a series of public offerings based on offering documents that contained material misrepresentations and omissions regarding its exposure to billions of dollars in mortgage-related assets.

The bond purchaser plaintiffs said the proposed settlement represented an...
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