(Photo: REUTERS/ENRIQUE MARCARIAN)
Citigroup Inc (C.N) has settled long-running litigation in which Allied Irish Banks Plc (ALBK.I) accused it of helping rogue currency trader John Rusnak rack up a $691 million loss.
U.S. District Judge Deborah Batts in Manhattan on Thursday ordered the dismissal of the 12-1/2-year-old case, in which government-controlled AIB sought $500 million of compensatory damages plus punitive damages.
Settlement terms were not disclosed. The accord averted a trial scheduled to begin on Jan. 25, over a fraud that was at the time among the largest to involve unauthorized trades.
Citigroup also resolved related claims against Buffalo, New York’s M&T Bank Corp (MTB.N), which in 2003 bought a majority of AIB’s Allfirst Bank in Baltimore, where Rusnak worked.
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