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WILMINGTON, Algonquin (Reuters) – The commission of Citigroup Inc (C.N) was sued by an individual investor for the alteration finished to the slope by eld of shoddy mortgage and foreclosure practices, which fresh led to a expensive mend agreed with regulators.

The lawsuit, filed on Wednesday in New York federal court, seeks to better the spiraling costs stemming from numerous housing-related jural battles, from "robo-signing" lawsuits to "putback" litigation.

Citigroup did not immediately convey a call hunt a comment.

The causa by archangel Brautigam, who according to court papers owns 380 shares of Citigroup, notes that the directors did not advance some money as part of a past commendation with the regulators.

The commendation required 14 business institutions to overhaul mortgage dealings and to compensate borrowers who were wrongly foreclosed upon. Costs are due to separate into the zillions of dollars, and business penalties are ease to be decided.

The causa said that the underway board, as substantially as four past directors including past U.S. Treasury Secretary Robert Rubin, breached their holding obligation to shareholders by imperfectness to right administer the country's third-largest bank.

"They failed to implement and maintain competent interior controls to control the foreseeably immense business fall-out from the lacking residential mortgage give underwriting standards," the upset said.

In addition to hunt to better the costs of poor fault from the defendants, the causa seeks reforms to joint governance.

It seeks to put to a balloting of shareholders' resolutions that would earmark the removal of directors who breached their holding obligation as substantially as proposals to tighten fault of foreclosure procedures.

The slope is already facing a slew of proceedings stemming from the business crisis in 2008 and the U.S. housing crash. Lawsuits include collection actions by shareholders and "putback" proceedings by buyers of now virtually meritless mortgage-backed securities that were packaged by the bank.

The housing is archangel Brautigam v Robert Rubin et al, U.S. District Court, Southern District of New York, No. 11-2693.

(Reporting by Tom Hals; Editing by Richard Chang)

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