AG James announced a significant victory in her case against Citibank after a judge denied Citi’s motion to dismiss the Office of the Attorney General’s (OAG) lawsuit on its core claims that Citi failed to protect and reimburse victims of fraud. The lawsuit alleges Citi misleads its customers about their rights after their accounts are hacked and funds are stolen and illegally denies reimbursement to victims of fraud. The decision by Judge Paul Oetken of the United States District Court for the Southern District of New York, which held that Citi misapplied the law when denying consumers’ claims for reimbursement, means that Attorney General James’ lawsuit against Citi will continue. In particular, the court found that a landmark consumer protection law known as the Electronic Fund Transfer Act (EFTA) applied to unauthorized wire transfers made through Citi’s consumer accounts. 

“When New Yorkers deposit their money in a bank, they expect it to be kept safe from scammers and thieves. Citi’s failures to protect its customers’ accounts are costing New Yorkers millions of dollars. Today’s decision will allow us to continue our case against Citi to help those whose savings were stolen and ensure the bank follows the law to protect its customers.” – AG James

https://ag.ny.gov/press-release/2025/attorney-general-james-announces-court-win-allowing-lawsuit-against-citibank