On July 29, 2010, the SEC filed a complaint against Citigroup Inc. According to the SEC: "During the summer and fall of 2007, Defendant Citigroup Inc. ("Citigroup") made a series of material misstatements about its investment bank's exposure to sub-prim mortgages. Citigroup made these misstatements at a time of heightened investor and analyst interest in public company exposure to sub-prime mortgages."

On July 29, 2010, the SEC published a litigation release announcing that it filed a settled civil action against Citigroup Inc. charging the company: "with misleading investors about the extent of the company's exposure to sub-prime mortgage-related assets during 2007."

On July 29, 2010, the SEC announced that it charged Citigroup Inc. ("Citigroup") with misleading investors about the company's exposure to subprime mortgage-related assets. According to the SEC's complaint filed in U.S. District Court for the District of Columbia, Citigroup, in response to intense investor interest on the topic, repeatedly made misleading statements in earnings calls and public filings about the extent of its holdings of assets backed by subprime mortgages. Between July and mid-October 2007, Citigroup represented that subprime exposure in its investment-banking unit was $13 billion or less, when in fact it was more than $50 billion. Without admitting or denying the SEC's allegations, Citigroup agreed to settle the charges. Citigroup consented to the entry of a final judgment that permanently enjoins it from future violation of the federal securities laws and agreed to pay a penalty of $75 million.

On October 8, 2010, Federal District Judge Ellen S. Huvelle entered final judgment against Citigroup Inc. pursuant to the consent of Citigroup Inc.

The Commission stated: "the Commission respectfully requests that this Court enter the attached order for Approval of the Distribution Plan and grant such other relief as the Court deems just and proper."

The Court stated: "The Court having reviewed the Securities and Exchange Commission's Motion to approve Distribution Plan and for good cause shown, it is hereby ordered that the Motion is granted and it is further ordered that the Securities and Exchange Commission's distribution plan is approved."

The Court ordered that: "The Clerk of the Court shall transfer all funds, less any registry fees, held in Court Registry Investment System account number 1:10-cv-01277-ESH bearing the case name designation “SEC v. Citigroup Inc., Case No. 10-cv-01277 (ESH)” (the “Fair Fund”) to the court-appointed Distribution Agent by sending the same to the account named “SEC v Citigroup INC Distribution Fund,” care of The Huntington Bank. . . . The Distribution Agent shall distribute the Fair Fund, less a reserve of $19,750.00for taxes and related fees and expenses of the Tax Administrator, plus $466,443.73 in residual funds received from the related class action In re Citigroup Securities Litigation 1:07-cv-9901 (SNDY), to Eligible Claimants in accordance with the terms of the Distribution Plan."