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.
- News BLB&G Secures Additional Shares for AMC Stockholders in Landmark Recapitalization Settlement April 3, 2023 Learn More
- News BLB&G Achieves Significant Trial Victory in Helping Fannie Mae and Freddie Mac Shareholders Recoup $612 Million in Class Action Against U.S. Federal Housing Finance Agency August 15, 2023 Learn More
- Awards BLB&G Named a 2022 “Securities Practice Group of the Year” by Law360 January 17, 2023 Learn More
- News BLB&G Receives Approval of a Landmark $1 Billion Settlement for Shareholders in Wells Fargo Securities Class Action September 8, 2023 Learn More
- Events BLB&G Partner Sal Graziano to Speak at ISS Webinar, “Could 2023 Be a Banner Year for Investor Recoveries? Mid-Year Review: Shareholder Class Actions” August 3, 2023 Learn More
- Awards Benchmark Litigation Names Three BLB&G Partners to Its “40 & Under List” August 4, 2023 Learn More
- Awards BLB&G Again Tops ISS SCAS “Top 100 Securities Class Action Settlements of All-Time” List February 13, 2024 Learn More
- Awards BLB&G Leads ISS SCAS List of Top 100 Securities Settlements of All Time January 25, 2022 Learn More
- News BLB&G Founding Partner Max Berger Ensures Sustainable Support for Students Pursuing Careers in Public Interest & Public Service with $3.3 Million Commitment to Columbia Law School Through the Dale and Max Berger Family Foundation December 1, 2021 Learn More