Citi Settles With Employees Over Subprime Stock Shock

Law360, Los Angeles (January 14, 2014, 7:59 PM EST) -- Citigroup Inc. has settled with employee stockholders in a putative class action alleging it hid its exposure to subprime mortgages before its stock tanked, according to an order filed in New York federal court on Friday.

U.S. District Judge Sidney H. Stein signed off on preliminary approval of the deal, which will resolve a long-running suit brought by six named plaintiffs who purchased Citigroup stock while working at the bank.

Judge Stein said that on first review, the settlement appeared to be fair, reasonable and adequate....
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