Citigroup has agreed to pay $730m to settle a class action lawsuit brought on behalf of investors, accusing the lender for deceiving them during the financial crisis of 2008.
The investors, who purchased Citi bonds including debt and preferred stock between 2006 and 2008, contended that they were misled by misstatements and omissions in the company’s disclosures during this period.
Without admitting the charges, the bank said, "Citigroup denies the allegations and is entering into this settlement solely to eliminate the uncertainties, burden and expense of further protracted litigation."
"This settlement is another significant step toward resolving our exposure to claims arising from the financial crisis, and we look forward to putting this matter behind us."
The proposed settlement will be monitored by the Hon Sidney Stein in the US District Court for the Southern District of New York, where the class action is pending.
In August 2012, Citi inked a $590m settlement with investors who accused the company for concealing its exposure to the collateralized debt obligations market to increase its share price.