derivative complaint

New Derivative Suit Filed Against Current and Former Citigroup Directors in S.D.N.Y.

A Citigroup shareholder filed a derivative complaint against several current and former individual directors alleging that they breached their fiduciary duties to the company by failing to implement and maintain adequate risk management procedures in connection with the company’s residential mortgage business. The complaint also alleges that the individual directors failed to maintain sufficient resources, processes, and controls to adequately manage the company’s foreclosure processing business. The complaint seeks disgorgement of profits and benefits and restitution from the individual defendants, an order compelling Citigroup to hold a shareholder vote on various corporate governance issues, as well as equitable and injunctive relief. Complaint.