Logourl black
From our private database of 14,100+ case briefs...

In re Citigroup Inc. Shareholder Derivative Litigation

Delaware Court of Chancery
2009 WL 481906 (Del. Ch. Feb. 24, 2009)


Facts

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

The rule of law is the black letter law upon which the court rested its decision.

To access this section, please start your free trial or log in.

Issue

The issue section includes the dispositive legal issue in the case phrased as a question.

To access this section, please start your free trial or log in.

Holding and Reasoning (Chandler, J.)

The holding and reasoning section includes:

  • A "yes" or "no" answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

To access this section, please start your free trial or log in.

What to do next…

  1. 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.

  2. 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 221,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 14,100 briefs, keyed to 189 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.