Citigroup, Inc. Derivative Litigation
Ticker Symbol:
NYSE: C
Practice:
Securities Fraud & Shareholder Litigation
Phase:
Current On November 9, 2007 Chimicles & Tikellis LLP filed the first of four shareholder lawsuits, derivatively on behalf of Citigroup, Inc. (“Citigroup”), in the Court of Chancery of the State of Delaware, for wrongdoing stemming from Citigroup’s financial and business exposure to subprime loans and the subprime mortgage crises. These lawsuits allege wrongdoing by several of Citigroup’s current and former officers and directors, for, among other things, breaches of fiduciary duties, waste of corporate assets and unjust enrichment. These actions allege that the wrongdoing occurred from at least as early as January 1, 2007 through present (“Relevant Time Period”). The alleged wrongdoing stems from: Defendants’ failure to adequately oversee Citigroup’s business in accordance with their fiduciary duties owed to Citigroup; Defendants’ failure to fulfill its duty of disclosure by failing to adequately oversee and/or implement policies, procedures, and rules to ensure compliance with laws that require the dissemination of accurate financial statements; Defendants’ exposing the Company to liability for state and federal law violations, including causing it to be a target of investigations by the SEC; and Defendants’ waste of corporate assets by agreeing to former CEO Charles Prince’s severance package. In sum, Plaintiffs claimed that Defendants’ actions were not a good faith exercise of prudent business judgment to protect and promote the Company’s corporate interests.
On February 5, 2008, the case was consolidated in the Court of Chancery with the caption In re Citigroup, Inc. Shareholder Derivative Litigation, Consolidated C. A. No. 3338-CC.
On February 24, 2009, the Court issued an opinion in the case granting in part and denying in part Defendants’ Motion to Dismiss, a copy of which is available below. Discovery has commenced and is still ongoing.
If you wish to discuss this Action further, have any questions concerning your rights or interests, or need additional information on this Action please contact the attorneys below.
| Attachment | Size |
|---|---|
| Consolidated Amended Derivative Complaint | 2.38 MB |
| February 24, 2009 Opinion | 152.02 KB |
Attorneys to Contact:
Pamela S. Tikellis (PamelaTikellis@chimicles.com)
Meghan A. Adams (MeghanAdams@chimicles.com)
P.O. Box 1035, 222 Delaware Ave, Suite 1100, Wilmington, DE 19801 Phone: 302-656-2500