Citigroup, Inc (NYSE: C) was ordered in an arbitration ruling to pay more than $1 million to three of its municipal bond funds.
The clients, who had demanded more than $2 million, accused Citigroup, Inc (NYSE: C)’s global markets units of breaching their fiduciary duty and other misconduct tied to their investments to fund known as MAT Five and MAT three, according to a filing with the Financial Industry Regulatory Authority (FINRA).
“The fund was represented by Citigroup to its brokers as a fixed-income alternative,” Ryan Bakhtiari, an attorney for the claimants at law firm Aidikoff, Uhl & Bakhtiari, said in a statement. “In truth, evidence at the hearing demonstrated that MAT was a risky investment.”
Back in May, arbitrators had dismissed a $1.5 million claim brought on by another investor in the funds, according ot decisions posted on FINRA’s website. In two other rulings that month, arbitrators ordered the company to pay plaintiffs more than $2 million.
Citigroup Inc. (Citigroup) is a global diversified financial services holding company. The Company provides consumers, corporations, governments and institutions with a range of financial products and services. As of December 31, 2009, Citigroup had approximately 200 million customer accounts and did business in more than 140 countries. Citigroup operates through two primary business segments: Citicorp, consisting of its Regional Consumer Banking (RCB) businesses and Institutional Clients Group (ICG), and Citi Holdings, consisting of its Brokerage and Asset Management (BAM), Local Consumer Lending (LCL), and Special Asset Pool (SAP). In April 2010, Barclays PLC acquired Italian credit card business of Citibank International Bank plc. In May 2010, the Company announced the creation of a new Collateral Management Services unit within its Securities and Fund Services business.
Shares of Citigroup, Inc (NYSE: C) traded down 1.48% on Monday hitting $3.65 during mid-day trading.
