Citigroup Inc mortgage bond investors, including Charles Schwab Corp and hedge fund Cambridge Place Investment Management, have filed suit against the bank over its home loan underwriting processes, according to a Reuters report.

In a regulatory filing today Citigroup said that the investors lawsuit alleges "actionable misstatements or omissions in connection with the issuance and underwriting of residential mortgage-backed securities." The investors "are seeking rescission of their investments or other damages."

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