NEW YORK (Reuters) – A federal judge on Tuesday refused Citigroup (NYSE: ) to dismiss a lawsuit filed by New York Attorney General Letitia James accusing its Citibank unit of failing to reimburse customers who fell victim to online fraud.
U.S. District Judge Paul Oetken in Manhattan said Citigroup must face James’ claim that it violated federal wiretapping laws and parts of three other lawsuits. It also dismissed some claims, in part because federal law preempted them.
James sued Citibank in January, saying the failure of its security systems to investigate red flags such as unrecognized devices, changing usernames and passwords and “phishing” allowed fraudsters to steal millions of dollars from customers.
