Citigroup emerged out of one of the largest mergers in history between Citicorp and Travelers Group in 1998. Though one of the Big Four banks in the United States, due to heavy exposure to CDOs (collateralized debt obligations) Citigroup suffered major losses during the recent subprime mortgage crisis and had to be bailed out by the United States federal government. Citigroup was removed from the Dow Jones Industrial Average due to significant government ownership. Citigroup was replaced by Citigroup's sister firm, Travelers Insurance.
Citigroup has a checkered past when it comes to SEC and related violations. In February 2011, we reported that the Financial Industry Regulatory Authority (FINRA) ordered Citigroup to pay $6.4 million to investors for losses pertaining to the municipal arbitrage fund. Investors who invested with Citigroup lost more than 80 percent of the value of their municipal arbitrage fund investments and filed claims against the brokerage firm alleging fraud, misrepresentation and breach of fiduciary duty.
In March 2011, we reported that the Securities and Exchange Commission (SEC) began an investigation into Citigroup after hearing of conflict regarding the structuring and sale of a particular CDO. In November of that same year, we reported that to settle those charges, Citigroup shelled out $285 million. In April 2011, Meyer Wilson reported on FINRA awarding investors $54 million in damages. Investors claimed that they lost millions of dollars due to Citigroup's breach of fiduciary duty, fraud, unsuitability and more.
As a securities brokerage firm licensed by FINRA, Citigroup has a legal duty to supervise its brokers and its brokers' recommendations to clients to ensure compliance with and prevent violations of the rules of the security industry. When an individual broker is negligent or acts in an unlawful manner against the interests of the client and that client suffers damages as a result of such wrongdoing, Citigroup may be held liable for the investor's losses. If you lost a significant amount of money after investing with Citigroup, contact Meyer Wilson today to discuss your claim.
Though Citigroup may be one of the largest financial entities in the United States, investment loss lawyers from Meyer Wilson have the skills and resources to successfully pursue claims against Citigroup and firms like them. Our firm’s ability to go head-to-head with large brokerage firms comes from 50 years of collective experience practicing in a single area of law: securities fraud.
Our single-minded focus has developed our skills and strategies, allowing us to win back hundreds of millions of dollars on behalf of our clients— over $350 million! Meyer Wilson represents clients in federal and state courts, as well as in arbitration through FINRA, AAA, and privately. We also represent international clients who have claims against FINRA-licensed firms.