Citigroup settles Global Crossing suit

Citigroup, Inc., New York, agreed to pay $75 million to settle a federal class-action lawsuit accusing its sell-side research department of issuing reports that inflated the financial health of Global Crossing Ltd. The suit was led by the $64.5 billion Ohio Public Employees Retirement System and the $52.9 billion State Teachers' Retirement System of Ohio, both in Columbus. Global Crossing filed for Chapter 11 bankruptcy protection in 2002 and emerged from protection in December 2003. All the plaintiffs in the case claim to have lost a combined $110 million as a result of their holdings in Global Crossing. Citigroup denied any wrongdoing, and said in a written statement that it is settling merely to avoid "the burden of litigation." Ohio Attorney General James Petro represented the plans in the suit.