(Oct 3): Citigroup Inc settled an employment suit with an ex-trader after judges ruled he was unfairly dismissed by the bank over claims he was scapegoated for the lender’s decade-long regulatory failures in executing stock trades for clients in Asia.
 
Ian Weir, an ex-sales trader for Asia-Pacific markets based in London, agreed to settle the case before a London tribunal hearing to decide what the bank would need to do to compensate for the unfair dismissal. 

The details of the settlement were not disclosed. Employment judges last year ruled that Weir was unfairly and wrongfully dismissed by the bank. 

“There is a signed agreement in place and the parties agree that the claimant will withdraw the claim,” a lawyer for the bank said at the hearing on Thursday.

Citi was hit with a HK$348 million (RM186.75 million) fine in 2022 by Hong Kong’s securities regulator for failures in stock trades for clients between 2008 and 2018. The watchdog found that employees sent clients false “indications of interest” about stocks to drum up interest and made “misleading statements” about how trades would take place. 

A spokesperson for Citi confirmed the case was settled but declined to comment further. Weir didn’t respond to a request for comment. 

Weir’s lawyer had previously said he will apply to get his job back at Citi. He sought around £100,000 (RM553,241) in compensation for the unfair dismissal, according to the court documents. 

Weir’s lawyers successfully argued he was unfairly dismissed in June 2021 for gross misconduct following an investigation into whether some Citi traders properly disclosed the bank’s own financial interest when facilitating trades. 

Citi denied that Weir was unfairly dismissed. The bank had a reasonable belief that he committed gross misconduct causing a serious breakdown in trust and confidence, according to documents prepared for the lawsuit.

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