Investors who purchased Citigroup bonds and preferred stock from May 2006 through November 2008 claimed Citigroup misled those who bought 48 issues of its corporate bonds. Citigroup maintains its denial of the allegations but said it agreed to settle to avoid the expenses and uncertainties that come with 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," Citigroup said in a statement.
Citigroup took a $45 billion bailout as a result of the financial crisis, which it has repaid. The company already paid $590 million last year to settle claims that it misled stock investors.
The chatter on Main Street (a.k.a. Google, Yahoo! and other search sites) is always of interest to investors on Wall Street. Thus, each day, TheStreet compiles the stories that are trending on the Web, and highlights the news that could make stocks move. -- Written by Brittany Umar.
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