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Citigroup Unit To Pay Record $98M To Settle Overtime Suit
Citigroup’s SmithBarney brokerage unit has agreed to pay $98 million to settle lawsuits filed by brokers claiming they are owed overtime pay.
Citigroups SmithBarney brokerage unit has agreed to pay $98 million to settle lawsuits filed by brokers claiming they are owed overtime pay. The proposal, which still requires court approval, is the largest of the four settlements in the last 10 months, with suits consolidated from New York, New Jersey and California, and involving a larger number of brokers than the other actions, about 20,000. UBS paid $87 million in February to end a similar action against it, while a month later, Morgan Stanley settled at $42.5 million and Merrill Lynch agreed to pay $37 million in a California settlement last August. And there may be more suits and settlements down the road. Attorney Mark Thierman of Reno, Nev., whos been involved in all four case so far, told Dow Jones Newswires attorneys are prepping another dozen or so cases against big brokerage house.