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Pieces of the fallout from Citigroup’s (NYSE:C) banking activities during the financial crisis are still raining down on the company. The latest chunk — a lawsuit filed by investors who bought Citigroup bonds and preferred stock from May 2006 through November 2008 — has only recently settled to the ground.
The third-largest U.S. bank by assets agreed to pay $730 million to lay to rest their claims that it misled debt investors about its condition during the financial crisis. The accord is still dependent on court approval, reported Bloomberg, and the settlement will be covered by Citigroup’s existing litigation reserves.
During the crisis, when the bank almost collapsed as a result of losses tied to subprime mortgages, Citigroup required a $45-billion bailout from the federal government. While that loan has been repaid, investors are still raising charges that Citigroup deceived them. The institution just settled a lawsuit, brought by stock investors who said they had also been misled, for $590 million…
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