Frequently Asked Questions

  1. What is the current case status?

  2. What is this case about?

  3. Why did I receive the Notice?

  4. What is a class action?

  5. Do I have a lawyer in this case?

  6. How do I know if I am a Settlement Class Member?

  7. What are acceptable forms of supporting documentation for my claim?

  8. How much will my payment be?

  9. What do I do if I do not want to be a part of this Settlement?

  10. Can I object to the Settlement?

  11. What happens if I do nothing at all?






1. What is the current case status?

The Settlement was approved by the Court on August 1, 2013, and Lead Counsel filed their Motion to Authorize Distribution of the Net Settlement Fund on April 25, 2014. Court authorized the distribution of the Net Settlement Fund on May 30, 2014. The date of distribution has not yet been set.

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2. What is this case about?

This Action is a class action lawsuit brought by investors alleging that they suffered damages as a result of alleged violations of the federal Securities Exchange Act of 1934. More specifically, this securities class action lawsuit was brought on behalf of investors who purchased or otherwise acquired shares of Citigroup common stock during the time period from February 26, 2007 through April 18, 2008, inclusive (the “Class Period”).

The lawsuit alleged that Defendants, Citigroup Inc. and certain of its former senior officers and directors, materially misrepresented Citigroup’s exposure to collateralized debt obligations (“CDOs”), as well as the value of those CDOs, during the Class Period. Plaintiffs alleged that Defendants were aware of both the size of Citigroup’s CDO holdings and their impairment before either of these matters were disclosed to the public, and that public disclosure regarding Citigroup’s CDO exposures caused the price of Citigroup common stock to decline. These actions, the case alleged, damaged those investors who purchased or otherwise acquired Citigroup shares during the Class Period, and constituted violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Defendants have denied Plaintiffs’ allegations and the Court has not ruled on the merits of the claims.

The Court-appointed Class Representatives (as defined in Question 3 below), on behalf of themselves and the Settlement Class (as defined in Question 5 below), have reached an agreement to settle the law suit for a $590 million cash settlement (the “Settlement”). The Settlement was approved by the Court on August 1, 2013.

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3. Why did I receive the Notice?

The Notice is being sent to you pursuant to an Order of the United States District Court for the Southern District of New York because you or someone in your family or an investment account for which you serve as a custodian may have purchased or otherwise acquired Citigroup common stock during the Class Period. The Court has directed us to send you the Notice because, as a potential Settlement Class Member, you have a right to know how this Settlement may generally affect your legal rights.

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4. What is a class action?

A class action is a type of lawsuit in which similar claims of a large number of individuals or entities are resolved together, thereby allowing for the efficient and consistent resolution of the claims of all class members in a single proceeding. In a class action lawsuit, the court appoints one or more people, known as class representatives, to sue on behalf of all people with similar claims, commonly known as the class or the class members. In this Action, the Court has appointed Jonathan Butler, M. David Diamond, David K. Whitcomb, Henrietta C. Whitcomb, John A. Baden III, Warren Pinchuck, Anthony Sedutto, Edward Claus, Carol Weil, and Public Employees’ Retirement Association of Colorado to serve as the class representatives (“Class Representatives”).

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5. Do I have a lawyer in this case?

The Court approved the law firm of Kirby McInerney LLP, as "Lead Class Counsel" for the Class. You will not be separately charged for the services of lawyers representing the Class. If the Settlement is finally approved by the Court, the Court will determine the amount of any fees and reimbursement of expenses that may be awarded out of the Class' recovery to lawyers representing the Class. If you want to be represented by your own lawyer, you may hire one to appear for you at your own expense.

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6. How do I know if I am a Settlement Class Member?

If you purchased or otherwise acquired the common stock of Citigroup, Inc. between February 26, 2007 through and including April 18, 2008, inclusive, you may be a Settlement Class Member in this action unless otherwise excluded as explained in the definition of the Settlement Class contained in the Notice on page 4.

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7. What are acceptable forms of supporting documentation for my claim?

Each section of the Claim Form must be fully documented to be considered eligible. This includes all purchase and sale transactions during the period February 26, 2007 through and including July 17, 2008, and those securities remaining unsold after the end of the Class Period. However, only purchases or acquisitions made during the Class Period - February 26, 2007 through and including April 18, 2008 - will be used to calculate your Recognized Loss.

Any documentation provided must include the claimant’s name and address or account number. Appropriate documentation to support your claim includes:

  • Trade Confirmation – Trade confirmation slips showing the trade date, quantity, price per security and net amount of the transaction are acceptable forms of documentation to support class period purchases or sales.
  • Official monthly, quarterly or year-end broker statements – Monthly, quarterly or year-end statements provided by your broker listing your transactions are sufficient to prove purchase and sale transactions so long as the necessary information for that transaction is included, such as the trade date, quantity and price paid or received for each security, and the total amount paid or received for each transaction. These statements may also be used to support the quantity of securities held after the class period has ended. On your Claim Form, these will be listed as Unsold Holdings.
  • Stock Certificates – Copies of stock certificates may be used to support the amount of shares held at the end of the class period, or unsold holdings. They do not evidence when and for how much the shares were purchased.

Please Note: The Claims Administrator, Lead Class Counsel or the Court reserve the right to request additional information or documentation.

Spreadsheets, charts, tax forms, hand written information, and other documentation prepared by the claimant are not considered adequate supporting documentation.

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8. How much will my payment be?

At this time, it is not possible to make any determination as to how much a Settlement Class Member may receive from the Settlement. After final approval of the Settlement by the Court and upon satisfaction of the other conditions to the Settlement, the Net Settlement Fund will be distributed to Authorized Claimants in accordance with the Plan of Allocation approved by the Court. Under the Plan of Allocation, your share of the Net Settlement Fund will depend on: (1) the dates on which you acquired or sold your Citigroup common stock, (2) the number of shares acquired or sold and the price you paid or received, (3) the expense of administering the claims process, (4) any attorneys’ fees and expenses awarded by the Court, (5) interest income received and taxes paid by the Settlement Fund, (6) the number of eligible shares acquired by other Settlement Class Members who submit timely and valid Claim Form, and (7) the Recognized Losses of all other Authorized Claimants computed in accordance with the Plan of Allocation set out on pages 7-8 of the Notice.

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9. What do I do if I do not want to be a part of this Settlement?

If you do not want to be part of the Settlement Class, you had the opportunity to exclude yourself from the Class. The exclusion deadline was December 6, 2012, and for certain Settlement Class Members, March 8, 2013.

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10. Can I object to the Settlement?

Any Settlement Class Member who did not request exclusion had the opportunity to object to any aspect of the Settlement, the Plan of Allocation or Lead Class Counsel’s request for an award of attorneys’ fees and reimbursement of Litigation Expenses. The objection deadline was December 21, 2012, and for certain Settlement Class Members, March 8, 2013.

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11. What happens if I do nothing at all?

If you do nothing, you will get no money from this Settlement. To share in the Net Settlement Fund you had to have submitted a Claim Form. If you are a Settlement Class Member and you did not exclude yourself from the Settlement, you will be bound by the terms of the Settlement described in the Notice once finally approved by the Court and you shall be forever barred from receiving payments pursuant to the Settlement but will in all other respects remain a Settlement Class Member and be subject to the provisions of the Stipulation and Agreement of Settlement, including the terms of any judgments entered and releases given. This means that each Settlement Class Member releases the Released Claims (as defined in paragraph 49 of the Notice) against the Citigroup Releasees (as defined in paragraph 49 of the Notice) and will be enjoined and prohibited from filing, prosecuting, or pursuing any of the Released Claims against any of the Defendants regardless of whether or not such Settlement Class Member submits a Claim Form.

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Pursuant to Court Order entered January 2, 2013, certain class members who were mailed the Notice after November 9, 2012 received an extension of this deadline until March 8, 2013. Such persons were mailed written notification of this extension. With respect to objections, pursuant to orders entered on March 1 and 4, 2013, the Court further extended that deadline for these class members to object and file notices of intent to appear to March 15, 2013.