Judge OKs $730M Citigroup Bondholder Settlement


A federal judge has approved a settlement in which Citigroup Inc agreed to pay bondholders $730 million to resolve claims that the bank concealed its exposure to billions of dollars of toxic mortgage assets prior to the financial crisis.

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U.S. District Judge Sidney Stein in Manhattan approved the settlement on Tuesday, less than three weeks after approving a similar $590 million settlement for Citigroup shareholders.

Stein said the latest settlement resolves claims by investors who bought Citigroup bonds in 48 offerings between May 2006 and August 2008.