Citigroup Settles Shareholder Lawsuit

Citigroup has agreed to pay $590 million to settle a shareholder lawsuit. Disgruntled shareholders claim that the bank hid billions of dollars in toxic mortgage assets, resulting in huge losses when the bank failed to take appropriate writedowns on collateralized debt obligations and performed self-dealing transactions that masked the risks. Citigroup lost $27.68 million in 2008. Citigroup has denied any wrongdoing, but called the settlement “a significant step toward resolving our exposure to claims arising from the period of the financial crisis.”