Citigroup Fails to Shake New York’s Online Fraud Safeguards Suit

Citigroup Inc. lost its bid to avoid some claims from New York Attorney General Letitia James (D) that its commercial banking unit failed to protect customers from online fraud, though a federal judge in Manhattan tossed several other claims against the bank alleging violations of state law.

Citigroup will have to face New York’s claims that it lacked sufficient anti-fraud protections for customers using wire transfers and online payment services such as Zelle, Judge J. Paul Oetken of the US District Court for the Southern District of New York said in a Tuesday opinion.

The bank had argued that the ...