Dallas, Texas 08/02/2013 (Financialstrend) – A centralized judge gave finishing approval on Thursday to a $590 million settlement by Citigroup Inc that resolves a shareholder lawsuit accusing the group of beating tens of billions of dollars of toxic mortgage assets.
“Though the $590 million rescue is a segment of the compensations that might have remained won at trial, it is considerable and reasonable in light of the dangers faced if the action proceeded to trial,” U.S. District Judge Sidney Stein in Manhattan wrote in a48-page estimation.
Citigroup vanished $27.68 billion in 2008. The claim cited the drop in the company’s stock value from $47.89 at the surprise of the fourth quarter of 2007 to $2.80 by January 2009. This recent judgment on the claims related to Citigroup had been presenting signs of pessimism to the investors. However the stock had managed to stay closer to its 52 week high price levels in the recent days of trading.
With the recently announced financial results for the quarter ended on June 30, 2013, there had been significant gains reported by the company in its share prices. However, it is worth noting that the stock had almost reached its resistance level and investors will have to wait to observed any further significant gains in the prices to earn cash returns in short term.
Citigroup Inc (NYSE:C) made gain of 1.40% to close at $52.86 per share on Thursday with intraday movements ranging from low of $52.74 to high of 53.20 per share. The 52 week lowprice for the stock is at $26.00 per share and 52 week high price is at $53.56 per share. There are 3.04 Billion shares in the market with institutional ownership of 69%. The trading volume on Thursday was at 20.58 million shares with average level at 30.21 million shares per day.