Brokers Sue Citigroup Over Signing Bonuses

MANHATTAN (CN) – A federal class action demands that Citigroup be enjoined from requiring its securities brokers from repaying their “signing bonuses” if they quit. The class of 500 claims Citigroup has failed to offer the “level of security and service” it promised.

     Named plaintiff Thomas Banus got a signing bonus of $45,675 when he went to work for Citigroup in October 2004. He says Citigroup told him and other class members it would forgive the “loan” if they stayed for 7 years, but would make them repay it on a prorated basis if they left before then.
     Banus claims this is an illusory or unilateral contract, as Citigroup has been unable to provide the security and services it offered. He also claims that “In many states, a penalty for termination of employment is unlawful and unenforceable by statute.” He wants Citigroup’s “promissory notes” declared unenforceable, plus damages for any class members who had to repay the signing bonuses.
     He is represented by Leon Greenberg of Las Vegas.

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