Bloomberg Law
March 24, 2023, 9:40 PM

Citigroup Gets Investors’ Suit Over Risk Thrown Out, for Now

Martina Barash
Martina Barash

Citigroup Inc. investors can’t proceed on claims that its directors’ and officers’ statements about risk management and internal controls violated securities laws, a federal court in New York ruled Friday.

The institutional and individual investors seeking to represent a class failed to show misrepresentations and the necessary level of intent, Judge Loretta A. Preska said for the US District Court for the Southern District of New York. They will have a chance to re-plead their claims.

Preska is also overseeing a separate derivative suit over related issues.

The investors alleged that the company and its leadership misrepresented its investment ...

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