Pension Plan Sues Citigroup for $9 Billion

Courthouse News Service.

MANHATTAN (CN) – Citigroup used misrepresentations to sell billions of dollars of euro notes, whose value plummeted during the financial crisis, a United Kingdom-based pension company claims in a federal class action.
     Rentokil-Initial Pension Scheme sued Citigroup and four of its top officers – Sanford Weill, Charles Prince, Robert Rubin and Vikram Pandit – on behalf everyone who bought euro notes from Citigroup between Oct. 12, 2005 and Feb. 25, 2009.
     Citigroup peddled the euro notes with prospectuses that underestimated the bank’s exposure to toxic mortgage-backed securities, and falsely claimed to be “well capitalized,” the pension fund claims.
     The lawsuit does not allege securities fraud.
     It seeks damages under the United Kingdom’s Financial Services and Markets Act 2000, or FSMA.

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