{"id":4829,"date":"2017-12-29T16:45:39","date_gmt":"2017-12-29T22:45:39","guid":{"rendered":"https:\/\/www.investorlawyers.com\/blog\/?p=4781"},"modified":"2022-03-22T15:07:58","modified_gmt":"2022-03-22T20:07:58","slug":"finra-orders-citigroup-pay-11-5m-including-least-6m-investors-inaccurate-stock-research-ratings","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/finra-orders-citigroup-pay-11-5m-including-least-6m-investors-inaccurate-stock-research-ratings\/","title":{"rendered":"FINRA Orders Citigroup to Pay $11.5M, Including at Least $6M to Investors, Over Inaccurate Stock Research Ratings"},"content":{"rendered":"

\t\t\t\tThe Financial Industry Regulatory Authority is ordering Citigroup Global Markets Inc. (CGMI) <\/a>to pay $11.5M in restitution and fines to resolve charges accusing the firm of displaying \u201cinaccurate research ratings\u201d on over 1800 stocks\u2014that\u2019s more than 38% of the stock that CGMI covers. According to the self-regulatory organization, the result of the inaccurate ratings was that a lot of customers ended up buying shares they wouldn\u2019t have purchased otherwise if the right information had been provided. <\/p>\n

Citigroup settled the case without denying or admitting to wrongdoing. The alleged inaccurate ratings would have been issued between 2011 and 2015.<\/p>\n

According to the self-regulatory organization, CGMI showed the inaccurate ratings not just to retail customers, but also to its brokers and supervisors. These inaccuracies were caused by errors in the firm\u2019s electronic ratings data feed that it provides to its clearing firm. As a result: the wrong rating was displayed for certain securities, ratings for securities that CGMI did not cover were provided, and\/or the ratings for securities that the firm did rate were not displayed at all. The research ratings on CGMI\u2019s actual research reports, to which brokers had access, were not impacted by these mistakes.<\/p>\n

Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The Financial Industry Regulatory Authority is ordering Citigroup Global Markets Inc. (CGMI) to pay $11.5M in restitution and fines to resolve charges accusing the firm of displaying \u201cinaccurate research ratings\u201d on over 1800 stocks\u2014that\u2019s more than 38% of the stock that CGMI covers. According to the self-regulatory organization, the result of the inaccurate ratings was […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3820,3752,3739,3738],"tags":[2938],"class_list":["post-4829","post","type-post","status-publish","format-standard","hentry","category-citigroup","category-financial-firms","category-finra","category-investor-fraud","tag-citigroup-global-markets-inc"],"yoast_head":"\nFINRA Orders Citigroup to Pay $11.5M, Including at Least $6M to Investors, Over Inaccurate Stock Research Ratings — Investor Lawyers Blog — December 29, 2017<\/title>\n<meta name=\"description\" content=\"The Financial Industry Regulatory Authority is ordering Citigroup Global Markets Inc. 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