Glasscock Orders Citigroup Directors' Communications Be Made Public
The Delaware Court of Chancery has ordered the directors of Citigroup Inc. to make public high-level communications regarding the company's internal controls in a derivative suit brought by a group of investors in the investment banking firm.
November 16, 2017 at 04:40 PM
3 minute read
Citigroup Centre in London. Photo credit: Herve Boinay
The Delaware Court of Chancery has ordered the directors of Citigroup Inc. to make public high-level communications regarding the company's internal controls in a derivative suit brought by a group of investors in the investment banking firm.
Vice Chancellor Sam Glasscock III on Wednesday ruled that the information, which had been redacted in a 215-page complaint and the board's motion to dismiss, was necessary for the public to understand the suit, accusing the Citigroup directors of failing to address weaknesses in its internal controls that exposed the company to fraud and regulatory compliance issues.
The directors had tried to keep communications between Citigroup's management and its board secret after The Wall Street Journal challenged the court's confidential treatment of parts of the filings. In court documents, the board argued that making the information public would reveal Citigroup's ongoing internal controls and its compliance protocols, which safeguard “the U.S. financial system from illicit financial activity.”
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