SEC Lawsuit Against Citigroup Placed on Emergency Hold
A federal appeals court agreed to place a lawsuit filed by the Security and Exchange Commission (SEC) against Citigroup (NYSE:C) on emergency hold. The SEC made the request to ensure it can continue to settle enforcement cases without requiring corporate defendants to admit any wrongdoing. A practice the court recently called into question.
Speaking for Citigroup, Danielle Romero-Apsilos, reiterated that the bank disagreed with Rakoff’s decision, and at trial would have “…substantial factual and legal defenses.”
Citigroup offered a settlement on October 19. The charges alleged in 2007 that Citigroup sold $1 billion of risky mortgages without telling investors that it was betting against the debt, which ultimately caused losses of more than $700 million.
Here’s how Citigroup shares are reacting to the news:
Citigroup, Inc. (NYSE:C): C shares recently traded at $26.31, down $0.59, or 2.19%. They have traded in a 52-week range of $21.40 to $51.50. Volume today was 21,607,534 shares versus a 3-month average volume of 58,790,200 shares. The company’s trailing P/E is 7.01, while trailing earnings are $3.75 per share.