Citigroup must face New York lawsuit over fraud scams

NEW YORK (Reuters) - A national justice connected Tuesday rejected Citigroup (NYSE:)'s bid to disregard a suit by New York Attorney General Letitia James accusing its Citibank portion of failing to reimburse customers who autumn unfortunate to online scammers.

U.S. District Judge Paul Oetken successful Manhattan said Citigroup indispensable look James' assertion it violated a national instrumentality concerning unauthorized ligament transfers, and parts of 3 different claims. He besides dismissed immoderate claims, successful portion due to the fact that national instrumentality preempted them.

James sued Citibank successful January, saying the inability of its information systems to analyse reddish flags specified arsenic unrecognized devices, changes successful idiosyncratic names and passwords, and "phishing" enabled scammers to bargain millions of dollars from customers.