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Allstate Ends Citigroup Mortgage-Backed Securities Lawsuit

Allstate Ends Citigroup Mortgage-Backed Securities Lawsuit

Allstate, the largest publicly traded U.S. home and auto insurer, dropped a lawsuit in which it accused Citigroup of fraudulently selling hundreds of millions of dollars of mortgage-backed securities.

Allstate sued Citigroup in New York State Supreme Court in Manhattan in 2011, along with banks including Deutsche Bank, Bank of America and Morgan Stanley.

The Northbrook, Illinois-based insurer, which said in the suit that it bought more than $200 million of securities from New York-based Citigroup that were backed by residential mortgages, voluntarily discontinued the case, according to a court filing dated yesterday.

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