Citigroup Inc. paid $680 million in cash and stock to David Whitcomb and other shareholders of Automated Trading Desk LLC in 2007. Five years later, the third- biggest U.S. bank will have to pay them again.
ATD founder Whitcomb, 69, and other former investors led a class-action lawsuit against the lender, claiming executives concealed toxic assets from shareholders and caused the stock to plunge in value. The bank agreed to pay $590 million to settle the claims, which would be among the biggest settlements by a Wall Street firm in the aftermath of the financial crisis.
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