The proposed settlement will be reviewed by Sidney Stein in the US District Court for the Southern District of New York, where the class action is pending.
If the settlement is approved, it will mark the end of a four-year-old class-action suit, which emerged as the US mortgage market collapsed and subsequently investors lost their money.
According to the US lender, it did not commit any wrong doing with its investors, who invested in the bank from 26 February 2007 to 18 April 2008, but has agreed to the settlement to eliminate the uncertainties, burden and expense of further protracted litigation.
"This settlement is a significant step towards resolving our exposure to claims arising from the period of the financial crisis," Citigroup said in a statement.
"Citi has overhauled risk management, reduced risk exposures and, through our core businesses in Citicorp, we are focused on the basics of banking, leveraging our unique presence throughout the emerging and developed markets to serve our clients and the real economy," the statement further clarified.
