Citigroup Sued by Loomis Sayles Over $70 Million in Trade Losses
- Firm says Citigroup’s trade execution impacted market prices
- Citigroup brokers were allegedly told not to disrupt market
The Citigroup headquarters in New York.
Photographer: Juan Cristobal Cobo/BloombergThis article is for subscribers only.
Loomis, Sayles & Co. sued Citigroup Inc., alleging the bank caused more than $70 million in losses while executing two separate trading orders that swamped the market.
The Boston-based investment firm says Citigroup’s global markets unit was serving as its broker in the purchase of almost 800,000 shares of Shopify Inc and sale of more than 5 million shares of Colgate-Palmolive Co. Despite being instructed to execute the trades in a manner that wouldn’t impact daily market prices, the bank allegedly placed the orders into an illiquid closing auction at the end of the day, on March 18.