Former Citigroup managing director Kathleen Martin files an amended lawsuit accusing COO Anand Selva of intentional deception regarding risk management compliance.
New York, Bollywood Fever: A former Citigroup managing director, Kathleen Martin, has filed an amended lawsuit accusing Citigroup‘s Chief Operating Officer, Anand Selva, of intentional deception related to the bank’s risk management compliance.
Martin alleges that Selva aimed to mislead the Office of the Comptroller of the Currency (OCC) about Citigroup’s adherence to a $400 million settlement agreement from 2020, which addressed risk management deficiencies. According to the lawsuit, Selva was worried that reporting accurate metrics would reflect poorly on the bank.
The amended complaint, filed in Manhattan federal court, claims that successful misreporting would have deceived shareholders and the public, while failure to do so could have had significant legal and financial repercussions for Citigroup, potentially leading to new fines.
Martin’s complaint highlights specific instances of compliance shortfalls at Citigroup, including a recent $135.6 million fine imposed by the OCC and Federal Reserve on July 10 due to the bank’s “insufficient progress” in resolving issues identified in 2020. This fine adds to the challenges faced by Citigroup’s Chief Executive Jane Fraser, who has been prioritizing regulatory compliance and organizational efficiency.
Citigroup has yet to comment on the amended lawsuit. The bank previously stated that Martin was terminated in September due to a lack of leadership and engagement skills in her role as interim data transformation chair. Additionally, Citigroup contends that Martin’s allegations are false and, even if true, do not qualify as protected whistleblowing under the federal Sarbanes-Oxley governance law.
The bank has until August 8 to respond to the amended complaint. Citigroup had previously sought to dismiss Martin’s original complaint on June 27, but federal law allowed her to amend it once.
The case is titled Martin v. Citibank NA et al, U.S. District Court, Southern District of New York, No. 24-03949.
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