Law360, Wilmington (April 5, 2016, 9:12 PM EDT) -- Citigroup Inc. investors have sued the company’s board of directors for spending billions worth of stockholder funds on fines, fees and settlements because its members “sat like stones growing moss” instead of ensuring sufficient internal compliance, according to a lawsuit unsealed Monday in Delaware’s chancery court.The 208-page derivative suit accuses 23 individuals of abdicating their oversight responsibilities in bad faith despite Citigroup’s “near-death experience” in 2008 and 2009 when it was bailed out by the federal government after the company’s management failed to implement effective controls.Even after the financial crisis brought the company “to the brink of total collapse,”... In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition. TRY LAW360 FREE FOR SEVEN DAYS
Citigroup investors are suing the firm 's board of directors in the US for spending billions worth of stockbroker funds on taxes , fees and penalties , accusing the bank of failing to ensure sufficient internal compliance .