Citigroup Whistleblower's Claim for Penalty Shares Rejected by Appeals Court
Overview of the Case
A federal appeals court ruled on Tuesday that Tamika Miller, a vice president at Citigroup, is not entitled to a share of the $400 million penalty that the bank agreed to pay in October 2020. This penalty is a result of Citigroup's failures in risk management.
Background on Whistleblowing Allegations
Miller alleged that Citigroup's conduct involved altering audit reports, which constituted a violation of its previous settlements.
- 2015 settlement of $700 million with the Consumer Financial Protection Bureau over credit card business practices.
- $35 million settlement with the Office of the Comptroller of the Currency on the same day over marketing practices.
Court's Reasoning
The 2nd U.S. Circuit Court of Appeals in Manhattan ruled that Miller did not adequately demonstrate that her whistleblowing was the catalyst for the bank's $400 million penalty, which was part of a settlement with regulatory bodies.
Conclusion
This ruling highlights the complexities and limitations faced by whistleblowers in seeking financial incentives tied to corporate penalties.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.