New York Attorney General Letitia James has announced a legal victory in her ongoing lawsuit against Citibank. A judge has denied Citibank's motion to dismiss the lawsuit, which claims that the bank failed to protect and reimburse victims of fraud. The case, led by the Office of the Attorney General (OAG), alleges that Citibank misled customers about their rights following account hacks and fund thefts.
Judge Paul Oetken of the United States District Court for the Southern District of New York ruled that Citibank misapplied legal standards when denying reimbursement claims from consumers. The court recognized that the Electronic Fund Transfer Act (EFTA) applies to unauthorized wire transfers made through Citibank's consumer accounts.
Attorney General James expressed her commitment to holding banks accountable: "When New Yorkers deposit their money in a bank, they expect it to be kept safe from scammers and thieves," she stated. She emphasized that Citi's failures have cost New Yorkers millions of dollars and affirmed her dedication to ensuring compliance with consumer protection laws.
The lawsuit, initiated in January 2024, targets one of the nation's largest banks for its alleged failure to safeguard consumers from fraud. It accuses Citibank of insufficient data security measures and inadequate responses to fraud incidents, leading to significant financial losses for New Yorkers. The Attorney General seeks restitution for affected customers who were denied reimbursement over the past six years, along with penalties and disgorgement.
Assistant Attorney General Chris Filburn is managing this case within the Consumer Frauds and Protection Bureau. This bureau is under the leadership of Bureau Chief Jane Azia and Deputy Bureau Chief Laura Levine, as part of the Division of Economic Justice overseen by Chief Deputy Attorney General Chris D’Angelo and First Deputy Attorney General Jennifer Levy.