Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Citigroup Inc. - Seite 2

Nachrichtenquelle: Business Wire (engl.)
14.11.2020, 02:30  |  140   |   |   

The complaint alleges that, contrary to defendants’ repeated reassurances that the Company was fulfilling its obligations under the consent orders and had revamped its risk management and internal control systems sufficiently to comply with these obligations, during the Class Period, Citigroup and its primary banking subsidiary had failed to: (i) implement and maintain an enterprise-wide risk management and compliance risk management program, internal controls, or a data governance program commensurate with Citigroup’s size, complexity, and risk profile; (ii) establish an effective risk governance framework; (iii) establish enterprise-wide risk management policies, standards, and frameworks necessary to adequately identify, measure, monitor, and control risks; (iv) establish effective front-line units, independent risk management, internal audit, and control functions; (v) develop and execute on a comprehensive plan to address data governance deficiencies, including data quality errors; and (vi) produce timely and accurate management and regulatory reporting. As a result of this information being withheld from the market, Citigroup stock traded at artificially inflated prices of more than $80 per share during the Class Period.

Then, through a series of disclosures, Citigroup’s failure to comply with the consent orders was revealed. On August 13, 2020, The Wall Street Journal reported that Citigroup had erroneously sent $900 million to a group of lenders that refused to return the money. Citigroup blamed the unprecedented mistake on human error and a breakdown in the Company’s manual processes – processes that the Company claimed to have fixed several years before. On September 14, 2020, The Wall Street Journal reported that authorities were preparing to reprimand Citigroup for failing to meaningfully improve its risk management systems. On October 7, 2020, the Office of the Comptroller of the Currency (“OCC”) and the Federal Reserve announced the entry of yet another consent order and the imposition of a $400 million penalty on Citigroup and its subsidiary bank for, inter alia, violating numerous banking laws and regulations, breaching prior consent orders, failing to implement effective internal controls and compliance systems, and engaging in systematically “unsafe and unsound” business practices.

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Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Citigroup Inc. - Seite 2 Robbins Geller Rudman & Dowd LLP (https://www.rgrdlaw.com/cases-citigroup-class-action-lawsuit.html) today announced that it filed a class action on behalf of an institutional investor seeking to represent purchasers of Citigroup (NYSE:C) common …

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