US investment bank Citigroup is to pay US$730 million to settle a class-action suit by bondholders over the financial crisis.
The suit alleged Citi misled buyers of its bonds over its exposure to sub-prime mortgages and other high-risk securities between 2006 and 2008.
Citi denied the claims, but said it agreed to the settlement to eliminate uncertainties.
Last August Citi struck a US$590 million settlement with shareholders.
Bondholders claimed that the firm not only misrepresented its exposure to mortgage-backed assets, but also understated losses on loans.
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