A coalition of about 20 institutional investors have wrested a settlement from Citigroup Inc. in a long-running suit over the banks’ role in the financial crisis. In a two-page stipulation filed on May 31, the institutional investorsmainly European pension fundsagreed to drop claims that Citi misrepresented its exposure to a panoply of subprime investments. Stuart Grant of Grant & Eisenhofer, who represented the funds, said his clients "got a very good result" in the confidential deal.
The plaintiffs covered by the settlement chose not to join a pair of class action lawsuits raising more-or-less identical claims. One of those cases, In re Citigroup Bond Litigation, 08 Civ. 9522, settled for $730 million in March. The other, In re Citigroup Securities Litigation, 07 Civ. 9901, settled for $590 million in August 2012. Both settlements have yet to be approved by Southern District Judge Sidney Stein (See Profile). The latest settlement is in International Fund Management v. Citigroup, 09 Civ. 8755.
