Citigroup Faces Lawsuits from Unhappy Investors

By Kyle Chezum Updated on 11/5/2010

11/05/2010

Citigroup, INC., is facing lawsuits from several of its own investors, including Charles Schwab Corp. and Cambridge Place Investment Management.  These lawsuits and others have been active since July.  Citigroup made the Securities and Exchange Commission aware of the litigation in a filing this past Friday.

According to Citigroup's statement, the lawsuits focus on "actionable misstatements or omissions in connection with the issuance and underwriting of residential mortgage-backed securities."  Cambridge Place claims to have lost $1.2 billion through bad loans that were bundled into securities.  Other investors have made similar claims.

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