Attorney General James Announces Court Win Allowing Lawsuit Against Citibank to Continue

pNEW YORK New York Attorney General Letitia James today announced a significant victory in her case against Citibank Citi after a judge denied Citis motion to dismiss the Office of the Attorney Generals OAG lawsuit on its core claims that Citi failed to protect and reimburse victims of fraud The lawsuit alleges Citi misleads its customers about their rights after their accounts are hacked and funds are stolen and illegally denies reimbursement to victims of fraud The decision by Judge Paul Oetken of the United States District Court for the Southern District of New York which held that Citi misapplied the law when denying consumers claims for reimbursement means that Attorney General James lawsuit against Citi will continue In particular the court found that a landmark consumer protection law known as the Electronic Fund Transfer Act EFTA applied to unauthorized wire transfers made through Citis consumer accounts ppWhen New Yorkers deposit their money in a bank they expect it to be kept safe from scammers and thieves said Attorney General James Citis failures to protect its customers accounts are costing New Yorkers millions of dollars Todays decision will allow us to continue our case against Citi to help those whose savings were stolen and ensure the bank follows the law to protect its customersppIn January 2024 Attorney General James sued Citi one of the largest banks in the country for failing to protect its consumers when they fall victim to fraud The lawsuit alleges that scammers can steal from Citis customers because the bank fails to implement strong data security and antibreach practices As a result of Citis inadequate security ineffective monitoring systems and failure to respond in realtime and properly investigate fraud claims New Yorkers have lost millions to scammers While Citi was obligated to reimburse those losses todays decision found that the bank misapplied the law to avoid its obligations to consumers Attorney General James is seeking to stop Citis deceptive practices and to collect restitution for victims who were denied reimbursement in the last six years as well as penalties and disgorgementppThis matter is being handled by Assistant Attorney General Chris Filburn with the Consumer Frauds and Protection Bureau The Consumer Frauds and Protection Bureau is led by Bureau Chief Jane Azia and Deputy Bureau Chief Laura Levine and is a part of the Division of Economic Justice which is overseen by Chief Deputy Attorney General Chris DAngelo and First Deputy Attorney General Jennifer LevyppWe value your privacyWe use cookies to enhance your browsing experience improve our content delivery and analyze our traffic We do not use cookies for advertising or marketing purposes By using this website you consent to our use of cookies You can learn more about how we collect and use information by reviewing our privacy policyp