SOURCE: Bernstein Litowitz Berger & Grossmann LLP
NEW YORK, NY--(Marketwire - Mar 18, 2013) - Bernstein Litowitz Berger & Grossmann LLP ("BLB&G") today announces that the parties in the In re Citigroup, Inc. Bond Litigation, Master File No. 08-cv-9522 (S.D.N.Y.) have reached an agreement to settle all claims in exchange for a payment of $730 million in cash. The parties resolved this high-profile matter after more than four years of protracted litigation, which included the denial of defendants' motions to dismiss and a massive and intensive discovery effort that involved more than 70 depositions.
The Citigroup Bond Litigation was filed on behalf of purchasers of 48 offerings of Citigroup preferred stock and bonds issued from 2006 through 2008. The action contends that Citigroup conducted a series of public offerings prior to the collapse of the subprime mortgage market based on offering documents that contained material misrepresentations and omissions regarding Citigroup's exposure to billions of dollars in mortgage-related assets. Plaintiffs also allege that Citigroup materially understated the loss reserves for its portfolio of high-risk residential mortgage loans, and falsely stated that risky assets held in off-balance sheet entities known as structured investment vehicles ("SIVs") were of high credit quality. It wasn't until November 2008, when the bank received substantial government assistance, that investors learned the full truth about Citigroup's financial condition.
BLB&G is the Court-appointed Bond Counsel for the Class representing, among others, Arkansas Teacher Retirement Systems and Louisiana Sheriffs' Pension and Relief Fund. The settlement is subject to Court approval, and the case is pending before Judge Sidney H. Stein of the United States District Court of the Southern District of New York. Former United States District Judge Layn R. Phillips served as mediator in helping to facilitate the resolution of this case.
Nearly $4 billion recovered for investors in last 5 months
In the past five months alone, BLB&G has recovered nearly $4 billion in securities class actions on behalf of investors who have been victimized by financial wrongdoing. In addition to the $730 million settlement announced today, in October, on the eve of trial in In re Bank of America Securities Litigation, BLB&G obtained a settlement of $2.425 billion -- the sixth largest securities recovery in history. Last month, again just weeks before trial and after almost five years of litigation, BLB&G obtained $688 million in two actions: In re Schering-Plough Corporation/ENHANCE Securities Litigation, ($473 million); and In re Merck & Co., Inc. Vytorin/Zetia Securities Litigation ($215 million). These settlements are also subject to Court approval.
About the firm
One of the world's leading securities litigation firms, BLB&G is responsible for recovering over $5 billion for investors in actions against Wall Street banks and other major financial institutions related to the subprime mortgage meltdown. Since the firm's founding in 1983, BLB&G has obtained over $25 billion in recoveries for investors and achieved precedent-setting corporate governance reforms on behalf of its institutional investor clients. Regularly entrusted by clients, and regularly appointed as lead counsel by courts in major securities class actions, the firm is widely recognized by industry observers for its legal excellence and achievements ("consistently achieving the highest returns for investors" -- The National Law Journal; "the best advice in the field" -- Chambers USA; "one of the best bar none...impressive achievements and excellent reputation" -- Benchmark Litigation).
Visit www.blbglaw.com to learn more.