Citigroup unit to pay $8.3M in FINRA partial tender offer case
By 
Kyle Brasseur2023-09-27T18:47:00
A broker-dealer affiliate of Citi agreed to pay nearly $8.3 million as part of a settlement with the Financial Industry Regulatory Authority (FINRA) addressing allegations the firm overtendered shares in partial tender offers (PTOs) and received millions in ill-gotten gains.
Citigroup Global Markets was fined $2.5 million and must disgorge approximately $5.8 million in accordance with FINRA’s decision notice published Tuesday. Nearly $2.8 million of the totals will be paid to FINRA, while the remainder will be split evenly between stock exchanges NYSE American and NYSE Arca.
FINRA, a self-regulatory organization, determined not to impose prejudgment interest in the case because the fine and disgorgement together achieved the appropriate deterrence value of equitable disgorgement, it said.
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