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Citigroup (C.US) seeks to dismiss New York wire fraud lawsuit

AInvestWednesday, Oct 9, 2024 9:40 am ET
1min read

Citigroup (C.US) spokesperson said on Tuesday that lawyers have urged U.S. District Judge Paul Oetken to dismiss the lawsuit filed by New York Attorney General Letitia James in January, which alleged Citibank, a unit of Citigroup, failed to compensate customers who were defrauded through online scams.

Citigroup lawyers said Citibank has robust and wide-ranging procedures to protect consumers from fraudulent wire transfers.

Citigroup spokesperson said: "Citigroup strictly complies with all laws and regulations related to wire transfers and works to prevent threats to our clients and help them recover losses where possible."

New York Attorney General James sued Citibank in January, alleging its lax security protocols allowed scammers easy access to user accounts and enabled them to steal users' deposits through unauthorized wire transfers.

She said "Citigroup's negligence" cost the state's customers millions of dollars.

Citigroup urged a federal judge in April to dismiss the lawsuit, saying that states were using the appropriate standards in the Uniform Commercial Code if banks took commercially reasonable security measures in good faith to verify customer identities.

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