Citigroup Inc. will pay $30 million to Massachusetts to settle charges that one of its analysts in Taiwan improperly leaked research to four major clients a day before making the information public.
Secretary of State William Galvin said the U.S. hedge fund and institutional clients used the advance word of the research to profit from weaker sales of Apple iPhones.
Galvin says Citigroup Global Markets Inc., a subsidiary of the banking giant, violated its own policies and procedures as well as federal and state securities laws. The settlement was filed Wednesday.
Galvin had the authority to pursue Citigroup because the company is registered to conduct business in Massachusetts, the Associated Press reported.