Ex-Citigroup executive sues bank for wrongful dismissal

Philip John Shaw, a former managing director at Citigroup, is suing the bank in Hong Kong over his dismissal in March 2019. He claims his firing was unjust and is seeking financial compensation, including retirement benefits and damages for harm to his reputation. Shaw is not alone; other ex-sales traders have also filed similar claims with the city's employment tribunal. These lawsuits come just before a six-year deadline for such claims. In 2019, Citigroup fired Shaw and his team after regulators found serious misconduct in the bank's Asia markets division. This misconduct reportedly lasted for about ten years. In March 2023, the Hong Kong Securities and Futures Commission banned Shaw from the financial industry for a decade, saying he failed to meet expected management standards. Citigroup has faced significant penalties for its actions. In 2022, the bank was fined nearly HK$348.3 million for extensive dishonest behavior and poor internal controls. The company disbanded its Asia high-touch equities sales trading desk and fired several employees without notice, resulting in the loss of their accrued retirement benefits. Former traders from the Asia team have accused Citigroup of unfair treatment and have indicated that the inadequate sales practices were tolerated by management for years. In response, Citigroup has denied these claims. Some former employees in other regions have successfully contested their dismissals in court. Shaw's lawsuit is pending, and he will wait for the outcomes of his colleagues’ cases in the Labour Tribunal before making further decisions. The next hearing related to one of those cases is set for April 2.