According to Reuters, U.S. federal judge Sidney Stein has dismissed a shareholder class-action lawsuit against Citigroup (NYSE:C), in connection with the loss of value in Citigroup stock acquired and held by its shareholders.
The suit alleged that the bank’s heavy involvement in subprime and other mortgages, and its high-risk business practices caused significant writedowns, leading to a meltdown in the company’s shares. The goal of this litigation was to recover damages sustained by the shareholders.
Judge Stein said however, that in case against current and former Citi executives, the plaintiff was not excused from initially asking bank’s board to bring suit, as required by Delaware Law.
Citi shares are currently down $0.08, or 1.66%, to $4.74 rtq (real time quote) in NYSE trading.