Rainy day; Citigroup.(Citigroup settles a class-action suit)(WorldCom Inc.)

Economist (US), The, May, 2004

Citigroup settles a class-action suit with WorldCom shareholders

THE bill is enormous, but it might have been even higher. Before financial markets opened on May 10th, Charles Prince, the chief executive of Citigroup, told analysts that his bank, easily the world's biggest by market capitalisation, would pay $2.7 billion to settle class-action litigation accusing it, in essence, of fraudulently misleading investors in WorldCom with tainted research in the bubble years. Billions more, Mr Prince added, would be put aside as a reserve against hundreds of other lawsuits, of which the most significant are tied to Enron.

Citigroup's total bill for bubble-related litigation has reached $9 billion, estimates Michael Mayo, an analyst with Prudential...

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