New York, Jan 26, 2026, 21:17 EST — Market closed
Shares of Citigroup Inc ended Monday higher, maintaining modest gains after hours as investors digested a new lawsuit accusing the bank of mishandling sexual harassment allegations.
The case comes at a tricky moment for Citi. As the bank pushes to expand its wealth division and strengthen oversight, a legal battle involving a key executive risks becoming a costly distraction for investors.
The drop comes just ahead of a Federal Reserve meeting, which frequently influences bank stocks. Changes in rates can shift the gap between what lenders earn on loans and what they pay depositors — the key driver of their profits.
Shares of Citigroup (C.N) climbed roughly 0.9%, closing at $114.65 in New York. After hours, the stock edged up another 0.1% to $114.82, having fluctuated between $113.16 and $115.46 earlier in the session. (Yahoo Finance)
Julia Carreon, a former managing director, filed a lawsuit in Manhattan federal court claiming she was pushed out after enduring sexual harassment from Andy Sieg, head of Citi’s wealth management division. Citigroup responded, calling the suit “absolutely meritless” and vowed to prove that in court. (Reuters)
The stock’s rise followed a broader upswing in financials. JPMorgan jumped roughly 1.1% on Monday, Bank of America crept up about 0.6%, and Wells Fargo climbed near 1.3% as major U.S. indexes advanced. (MarketWatch)
Separately, a securities filing on Monday revealed that Citigroup Global Markets Holdings, backed by Citigroup Inc, submitted a prospectus pricing supplement. (SEC)
At the start of this month, Citi’s CEO Jane Fraser told investors the bank kicked off 2026 with “visible momentum across the firm,” and she reaffirmed the profitability goal tied to return on tangible common equity. (Citi)
But workplace conduct lawsuits often drag out, and the fallout isn’t limited to just damages. A drawn-out battle can spark additional claims, attract regulatory scrutiny, and complicate efforts to retain senior staff—a risk Citi can ill afford as it pushes to boost returns.
The Fed’s two-day policy meeting kicks off Jan. 27 and wraps up the following day, with a press conference set for Wednesday. Market watchers are focused on any changes to the rate forecast and the potential impact on bank margins heading into February. (Federal Reserve)
