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The Boston Globe

Business

Citigroup to settle suit for $730m

NEW YORK — Citigroup has agreed to pay $730 million to settle a class-action lawsuit that claimed investors were misled by the bank’s disclosures when they purchased its debt and preferred stock.

The investors’ purchases were made from May 11, 2006, through Nov. 28, 2008.

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Citigroup Inc. denied the allegations and said in a statement late Monday that it agreed to the settlement so it could get rid of further expenses and uncertainties that come along with drawn out litigation.

‘‘This settlement is another significant step toward resolving our exposure to claims arising from the financial crisis, and we look forward to putting this matter behind us,’’ the New York company said in a statement.

Citigroup said that the proposed $730 million payment will be made from its existing litigation reserves.

In January Citigroup announced a settlement with federal regulators related to its foreclosure practices.

Citigroup’s stock shed 45 cents to $45.79 in trading on Tuesday.

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