NEW YORK - Citigroup said Wednesday it has agreed to pay 75 million dollars to settle a class action suit brought on behalf of purchasers of Global Crossing securities, ending a long running dispute.
The banking giant said the plaintiffs expect to distribute two-thirds of the settlement to investors in underwritten public offerings of Global Crossing securities and one third to other investors in Global Crossing securities.
Citi denied any violation of the law in the settlement agreement, and said that it was entering into the settlement "solely to eliminate the uncertainties, burden and expense of further protracted litigation."
Citigroup was among investment banks sued by shareholders who alleged stock offerings contained misleading information.
Global Crossing filed for Chapter 11 bankruptcy protection in 2002, and emerged in 2003 after a highly contentious and public reorganization.
03/02/2005 15:04 GMT