Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
Citigroup trading losses class action lawsuit overview:
- Who: Loomis Sayles Trust Co. filed a class action lawsuit against Citigroup Global Markets Inc.
- Why: Loomis claims Citigroup caused $70 million in trading losses for itself and its clients by allegedly mishandling trade orders for shares of Shopify and Colgate-Palmolive.
- Where: The class action lawsuit was filed in New York federal court.
Citigroup caused $70 million in trading losses after mishandling large trade orders for shares of Colgate-Palmolive and Shopify, a new class action lawsuit alleges.
Plaintiff Loomis Sayles Trust Co. claims Citigroup failed in its duty of best execution by placing large stock orders in a closing auction when it should have known it would be unwise to do so.
Loomis claims it directed Citigroup in March to buy 780,000 shares of Shopify and sell 5 million shares of Colgate-Palmolive while using “appropriate market liquidity analysis.”
“Any reasonable analysis of liquidity and imbalance data would have revealed that the auction could not bear the full quantity of the orders without materially affecting the stock price,” states the Citigroup class action.
Loomis wants to represent a nationwide class of its clients who participated in and were damaged by Shopify and/or Colgate-Palmolive trades executed by Citigroup on March 18.
Looms alleges it told Citigroup to “use its discretion to execute (the orders) in a manner that would not materially impact the prices at which the securi”es were purchased or sold.”
Loomis says it told Citigroup it could hold off on executing trade orders if warranted
Further, Loomis argues it informed Citigroup it should hold off on making the trade orders that day if its analysis determined there wasn’t enough liquidity to prevent them from affecting market prices.
Citigroup, however, failed to follow Loomis’ instructions and thus breached its obligations to the company by “flooding the market” with the orders and causing “artificial price dislocation,” among other things, the Citigroup class action alleges.
Loomis claims Citigroup is guilty of breach of fiduciary duty and breach of contract. It is demanding a jury trial and requesting an award in “an amount sufficient” to compensate themselves and the class for the “harm they have suffered.”
A separate class action lawsuit filed against Citigroup was certified in February after a judge rejected the company’s argument that individual consent could not be determined among a group of consumers claiming it robocalled them without permission.
Are you a Loomis client who was financially harmed when Citigroup executed the Shopify and Colgate-Palmolive trade orders? Let us know in the comments.
The plaintiff is represented by Stephen P. Younger, Leah S. Rizkallah, Amanda Coleman, Dean Richlin, Matthew C. Baltay and Natalie F. Panariello of Foley Hoag LLP.
The Citigroup Trading Losses Class Action Lawsuit is Loomis Sayles Trust Co. LLC v. Citigroup Global Markets Inc., Case No. 1:22-cv-06706, in the U.S. District Court for the Southern District of New York.
Don’t Miss Out!
Check out our list of Class Action Lawsuits and Class Action Settlements you may qualify to join!
Read About More Class Action Lawsuits & Class Action Settlements:
One thought on Citigroup class action alleges company caused $70M in trading losses
Add me