Citigroup (Citi) is due to pay $730m to settle a class-action suit with investors related to the 2008 financial crisis.
The lawsuit alleged Citi misled buyers of its bonds over its exposure to subprime mortgages and other high-risk securities ahead of and during the crisis, from May 2006 to November 2008.
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The proposed settlement, which comes after more than four years of litigation, will be reviewed by US District Court Judge Sidney Stein in New York.
Citi has also been accused by the investors of understating loss reserves for its high-risk residential mortgage loans and falsely stating risky assets were of high credit quality, stated Bernstein Litowitz Berger & Grossman, a law firm that represented pension funds and other investors in the case.
The bank, though, has denied the allegations and has said that it was entering into the settlement to end the litigation. It said the settlement would be covered by existing litigation reserves.
"This settlement is another significant step toward resolving our exposure to claims arising from the financial crisis," Citi said in its statement.
