Court Grants Final Approval of $730 Million Cash Recovery for Citigroup Bond Class
August 20, 2013
The United States District Court of the Southern District of New York has granted final approval of the $730 million cash settlement reached in the In re Citigroup, Inc. Bond Litigation. The settlement is the second largest recovery in a securities class action brought on behalf of purchasers of debt securities, as well as the second largest settlement arising out of the subprime meltdown and financial crisis. It is also the third largest recovery in a case that did not involve a financial restatement, and among the fifteen largest securities class action recoveries in history.
The settlement comes after more than four years of protracted litigation, including the denial of defendants’ motions to dismiss and a massive and intensive discovery effort that involved more than 70 depositions.
The Citigroup Bond litigation was filed on behalf of purchasers of 48 offerings of Citigroup preferred stock and bonds issued from 2006 through 2008. The action contends that Citigroup conducted a series of public offerings prior to the collapse of the subprime mortgage market based on offering documents that contained material misrepresentations and omissions regarding Citigroup’s exposure to billions of dollars in mortgage-related assets. Plaintiffs also allege that Citigroup materially understated the loss reserves for its portfolio of high-risk residential mortgage loans, and falsely stated that risky assets held in off-balance sheet entities known as structured investment vehicles ("SIVs") were of high credit quality. It wasn’t until November 2008, when the bank received substantial government assistance, that investors learned the full truth about Citigroup’s financial condition.
BLB&G is the Court-appointed Bond Counsel for the Class representing, among others, Arkansas Teacher Retirement Systems and Louisiana Sheriffs' Pension and Relief Fund. Former United States District Judge Layn R. Phillips served as mediator in helping to facilitate the resolution of this case.
Also of Interest
BLB&G Again Tops SCAS All-Time List With More Top Recoveries Than Any Other Firm
Historic Settlement Establishes Landmark Fox News Workplace Professionalism and Inclusion Council to Remedy Workplace Harassment Issues
November 20, 2017
SCAS Again Ranks Bernstein Litowitz Among Top Securities Litigation Firms in the Nation With Over $2 Billion Recovered and Highest Average Recovery
April 20, 2017
BLB&G #1 in the Nation with Most Dollars Recovered - ISS Securities Class Action Services 2018 Rankings
BLB&G Leads SCAS All-Time List Scoring More Top Recoveries Than Any Other Firm
Benchmark Once Again Names Hannah Ross One of Top U.S. Women Litigators in 2018
July 9, 2018
Benchmark Again Names Hannah Ross One of Top U.S. Women Litigators in 2019
ISS SCAS Releases Top Securities Settlements Report: Bernstein Litowitz Leads the Field for Ninth Consecutive Year
February 11, 2019
Benchmark Once Again Names Six BLB&G “Litigation Stars”
SCAS Again Ranks BLB&G A Leader in the Field