Investigating Claims Involving Citigroup Autocallable Contingent Coupon Equity Linked Securities Linked to Lucid Group Inc.
The White Law Group is investigating potential securities fraud claims involving Citigroup Autocallable Contingent Coupon Equity Linked Securities Linked to Lucid Group Inc., and the potential liability of broker-dealers who may have improperly recommended these risky investments to retail clients.
About the Citigroup Structured Notes Linked to Lucid Group Inc.
The Autocallable Contingent Coupon Equity Linked Securities Linked to Lucid Group Inc., due January 16, 2025, were issued by Citigroup Global Markets Holdings Inc. and are fully and unconditionally guaranteed by Citigroup Inc. These notes are a type of structured product, combining features of both debt securities and derivatives, and are considered complex and speculative investment vehicles.
According to offering materials, these securities offer the potential for periodic contingent coupon payments at an annualized rate higher than conventional Citigroup debt securities. However, in exchange for this higher potential yield, investors take on significant risks, including:
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The risk of missing one or more coupon payments, or receiving no income at all
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The risk that the value at maturity may be substantially less than the principal, and could be zero
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The risk that the investment could be automatically called prior to maturity, based on the performance of Lucid Group Inc.
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Exposure to the credit risk of both Citigroup Global Markets Holdings Inc. and Citigroup Inc.
Additionally, investors do not receive any dividends from Lucid Group Inc. or participate in any stock appreciation.
Are Structured Notes Suitable for You?
Structured products like these are often marketed to investors as offering income with a level of downside protection, but in reality, that protection is conditional and limited. If Lucid Group’s stock falls below a certain threshold, the investor may lose a substantial portion—or even all—of their principal investment.
Further, these securities may have limited or no liquidity, making it difficult for investors to exit their position if market conditions change.
Broker Responsibility and Potential Claims
Brokerage firms have a duty to recommend investments that are suitable for their clients, based on factors like risk tolerance, investment objectives, and financial profile. If your financial advisor recommended Citigroup Autocallable Contingent Coupon Equity Linked Securities Linked to Lucid Group Inc. without fully disclosing the risks—or if the investment was unsuitable for your portfolio—you may have grounds to file a claim for recovery.
Free Consultation with a Securities Attorney
If you invested in these or similar Citigroup structured notes at the recommendation of your financial advisor and have experienced losses, contact The White Law Group for a free consultation. We are dedicated to helping investors recover losses due to unsuitable investment recommendations and broker misconduct.
For more information, visit: Structured Note Products Lawsuits – Securities Fraud Attorneys
Frequently Asked Questions (FAQs)
1. What are Autocallable Contingent Coupon Equity Linked Securities?
These are structured notes that combine elements of debt and equity derivatives. They offer the potential for periodic coupon payments, but only if certain conditions tied to the performance of an underlying stock—such as Lucid Group Inc.—are met. They can be automatically called (redeemed early) and may result in significant loss of principal if the underlying stock performs poorly.
2. Why are these structured notes considered risky?
While they may offer a higher yield than traditional bonds, the risks include:
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Missing one or more interest payments
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Receiving less than the principal at maturity—or even nothing
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Limited liquidity and the possibility of early redemption
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Exposure to the creditworthiness of Citigroup Global Markets Holdings Inc. and Citigroup Inc.
These notes are complex and may be unsuitable for many retail investors.
3. Can I recover losses from investing in these securities?
If your broker or financial advisor recommended these notes without fully disclosing the risks or if the investment was unsuitable for your risk tolerance or objectives, you may have a claim. The White Law Group may be able to help you pursue recovery through FINRA arbitration.
