Citigroup, Inc (NYSE: C) won the dismissal of most of the claims against a shareholder lawsuit alleging that the bank had lied about its exposure to collateralized debt obligations and other non-performing assets.

Federal District Judge Sidney H. Stein dismissed a variety of claims made in a 536 page complaint against the bank, saying that in most cases the plaintiffs had failed to provide facts showing that the bank and its officials knew that they were intentionally misleading investors.0

Stein said in a ruling that, “The court finds that plaintiffs have stated a claim to relief only with respect to alleged misstatements and omissions occurring between February 2007 and April 2008 concerning Citigroup’s collateralized debt obligation holdings.”

The plaintiffs sued Citigroup, Inc (NYSE: C) in 2007  and hoped to seek to represent all investors that purchased stock between January 1st and January 15th of 2009 saying that they lost money when the extent of Citigroup, Inc (NYSE: C)’s loss became public.

Stein ruled that shareholders had failed to allege that the bank and its officials were acting inappropriately when they made statements about Citigroup, Inc (NYSE: C) assets including mortgage-backed securities, structured investment vehicles and collateralized debt obligations.

Citigroup, Inc (NYSE: C) spokeswoman Danielle Romero-Apsilos said that “We are pleased the court has dismissed the great majority of plaintiffs’ claims and substantially reduced the class period at stake.”

Citigroup Inc. (Citigroup) is a global diversified financial services holding company. The Company provides consumers, corporations, governments and institutions with a range of financial products and services. As of December 31, 2009, Citigroup had approximately 200 million customer accounts and did business in more than 140 countries. Citigroup operates through two primary business segments: Citicorp, consisting of its Regional Consumer Banking (RCB) businesses and Institutional Clients Group (ICG), and Citi Holdings, consisting of its Brokerage and Asset Management (BAM), Local Consumer Lending (LCL), and Special Asset Pool (SAP). In April 2010, Barclays PLC acquired Italian credit card business of Citibank International Bank plc. In May 2010, the Company announced the creation of a new Collateral Management Services unit within its Securities and Fund Services business.

Shares of Citigroup, Inc (NYSE: C) traded down 3.11% during mid-day trading on Thursday.