Court Clears $590 Million Settlement In Citi CDO Dispute; Counsel Fees Cut

The U.S. District Court for the Southern District of New York Aug. 1 signed offon a settlement agreement under which Citigroup Inc. will pay $590 million to resolve allegations that it misled shareholders about its exposure to certain collateralized debt obligations (In re Citigroup Inc. Securities Litigation).

Judge Sidney Stein also approved the proposed allocation plan, subject to a clarification requested by certain objecting class members regarding how to treat Citi stock purchased through an employee stock-purchase plan.

In addition, the court said, lead counsel is entitled to an award of attorneys’ fees, “albeit a smaller one” ...