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Lipshutz v. Costello

Suit Is Transferred to SDNY for Litigation With Consolidated Actions Over Same Facts

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MEMORANDUM AND ORDER This is a shareholder derivative action brought by plaintiffs Solomon Lipshutz and Jeweltex Manufacturing Inc. Retirement Plan on behalf of Citigroup Inc., a nominal defendant, against certain Citigroup directors and officers (the “individual defendants”). Defendants move to transfer this action to the Southern District of New York so that it can be litigated along with two consolidated actions involving the same underlying facts. For the reasons explained below, the motion is granted. BACKGROUND The Court assumes familiarity with the facts of this case. In short, plaintiffs are Citigroup shareholders. Compl. 14 (Dkt. #1). They principally allege that the individual defendants breached their fiduciary duties to Citigroup and its shareholders by failing to adequately implement internal controls, risk management systems, and data governance practices, resulting in, among other things, Citigroup being fined “billions of dollars” and mistakenly making a $900 million payment to Revlon creditors. Id. at

3, 5-6, 56-60, 128-30, 188. Plaintiffs also allege that the individual defendants caused Citigroup to make materially misleading statements and omissions regarding its oversight and risk management practices in its annual proxy statements between 2018 and 2021. Id. at

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