Both the companies said in a statement that they are glad to put this matter behind and look forward to working together constructively in the future.
The statement also adds that the payment resolves ‘all claims related to this dispute’.
Earlier, Citi filed a law suit against Wells Fargo in Supreme Court of the State of New York and sought more more than $20bn in compensatory damages and more than $40bn in punitive damages from Wells Fargo for interference with its contract with Wachovia.
On 29 September 2008, Citi and Wachovia both announced an agreement-in principle for Citi to acquire all of the banking subsidiaries of Wachovia.
Citi has claimed that it provided liquidity and market support to Wachovia since the day of the acquisition agreement.
