Clients file charges against Citigroup Spain

16th April 2009, Comments 0 comments

Clients with modest savings accuse the bank of promoting Lehman products to them, causing them to lose their savings.

MADRID – Two Spanish law firms said Wednesday they had filed a complaint against Citibank for clients who lost money in investments made through the US bank in failed US investment group Lehman Brothers.

The complaint on behalf of 122 clients was filed on April 7 at a Spanish court and seeks more than EUR 3 million in compensation, law firms Jausas and Zunzunegui said in a statement.

The clients decided to take legal action because they were not able to arrive at an out of court settlement with Citibank, they added.

The law firms accused Citibank of "aggressive marketing" of the Lehman products to people with modest savings even though this was "clearly not in the interest of the clients".

Former Wall Street icon Lehman Brothers collapsed in September under mountains of debt, causing thousands of people around the world to lose their savings.

About 5,000 savers in Spain are affected by investments in financial products issued by Lehman Brothers, according to the association of bank, savings and insurance company users Adicae.

Many were not Lehman clients but they discovered that they lost savings which their banks invested in the group.

AFP / Expatica

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