Pensions, Wells Advisor Sue Citi Directors for Fraud
April 7, 2016
Ned Weinberger comments on Citi case alleging breach of fiduciary duty
The Oklahoma Firefighters Pension and Retirement System, Key West Municipal Firefighters and Police Officers’ Retirement Trust Fund and Wells Fargo financial advisor filed a lawsuit recently against 23 current and former Citi board directors alleging they allowed fraudulent and illegal activity to occur. The plaintiffs are all Citi shareholders.
The lawsuit alleges wide-ranging breaches of fiduciary duty by board members. The suit also claims the named directors failed to form adequate compliance systems and are responsible for a long list of high-profile issues that have cost the company billions in fines and settlements.
Firm attorney, Ned Weinberger, commented that these cases can be difficult to win as plaintiffs will have to prove board members acted in bad faith despite not benefitting personally by the conduct alleged in the complaints.
“Just establishing negligence or gross negligence isn’t enough, you have to show the board had, and knew it had, a major obligation but didn’t do anything," Weinberger said.