Citigroup Inc. agreed to pay almost $25 million to a group of investors who said that they were misled about the quality of mortgage-backed securities that suffered losses after the housing market collapsed, according to a proposed settlement filed in federal court on Monday, Dow Jones Newswires reported yesterday. The investors in a lawsuit alleged that Citigroup lied about the quality of the mortgage-backed securities, which were issued in 2006. The investors, led by the City of Ann Arbor Employees' Retirement System and the Greater Kansas City Laborers Pension Fund, said that they "suffered losses upon disclosure of the truth," according to documents filed in U.S. District Court for the Eastern District of New York. The investors, who filed their original suit in 2008, said that they agreed to settle the lawsuit for $24,975,000, and said that Citigroup will not contest the settlement. The settlement still requires court approval.
