NEW YORK Feb 20 Citigroup Inc has settled
a lawsuit against Barclays Plc in which it sought to
recover more than $141 million for providing foreign exchange
services to a unit of Lehman Brothers Holdings Inc
during the 2008 financial crisis.
In a letter filed on Thursday with the U.S. District Court
in Manhattan, the banks said they had reached an agreement in
principle to resolve the case.
Terms were not disclosed. U.S. District Judge Lorna
Schofield dismissed the lawsuit without prejudice and gave
Citigroup 30 days to refile if warranted.
Barclays declined to comment. Citigroup had no immediate
The case related to Citigroup's role in the Continuous
Linked Settlement system, which was designed to ensure that
foreign exchange trades are completed.
Citigroup said it sought to stop settling trades for
Lehman's brokerage unit on Sept. 17, 2008, two days after Lehman
filed the largest bankruptcy in U.S. history, because it was
incurring large losses.
It said that because Barclays was then buying Lehman's U.S.
broker-dealer business, the British bank urged it to continue
the services, and would cover its losses from Sept. 17 to 19.
Citigroup had said Barclays failed to honor this indemnity,
causing it to lose $580 million. It later reduced this sum to
$90.8 million, and sued for the lowered amount plus interest and
The case is Citibank NA v. Barclays Bank Plc, U.S. District
Court, Southern District of New York, No. 13-03063.