Citigroup in $590 Million Settlement of Subprime Lawsuit
NY Times: DealBook
August 31, 2012
Citigroup has agreed to pay $590 million to settle a class-action lawsuit brought by shareholders who contended that they had been misled about the bank’s exposure to subprime mortgage debt on the eve of the financial crisis. The shareholder lawsuit contended that the bank had failed to disclose the bank’s huge holdings in securities known as collateralized debt obligations that were tied to mortgage securities until November 2007.