Citigroup Settles Global Crossing-Related Claims

Continuing to fulfill its pledge to “put the entire era behind us,” Citigroup, Inc. (NYSE: C) has announced a preliminary settlement of the claims brought against it as part of the Global Crossing securities class action pending in the S.D.N.Y. According to a Reuters report, the company acted as one of Global Crossing’s bankers and was accused “of issuing inflated research reports and failing to disclose conflicts of interest.” The settlement is for $75 million (pre-tax), with two-thirds of the settlement scheduled to go to investors in underwritten public offerings of Global Crossing securities and one-third to other Global Crossing investors.

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