In re Citigroup Inc. Shareholder Derivative Litigation
Delaware Court of Chancery
2009 WL 481906 (Del. Ch. Feb. 24, 2009)
In 2005, the housing bubble burst. This caused a number of subprime lenders to fail. According to its shareholders (plaintiffs), Citigroup Inc. (Citigroup) began engaging in subprime lending in 2006. Citigroup sold financial products that the plaintiffs claim exposed it to $55 billion is subprime liability. By November 2007, Citigroup was forced to give $7.6 billion in emergency financing to its structured investment vehicles (SIVs) and then bail them out by taking on $49 billion in assets. Several of Citigroup’s directors sat on the Audit and Risk Management Committee (ARM), which met frequently to discuss and manage risk. The plaintiffs sued existing and former Citigroup directors and officers (defendants), seeking to hold them personally liable for the company’s losses. The plaintiffs claim that the defendants failed to oversee, manage, and disclose Citigroup’s exposure due related to the subprime lending market, despite red flags that the housing market was about to collapse.
Rule of Law
Holding and Reasoning (Chandler, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 166,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 13,800 briefs, keyed to 187 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.