Former Citigroup Executive Philip John Shaw files Lawsuit against Bank Over Alleged Wrongful Termination

Philip John Shaw, a former senior executive at Citigroup Inc., has filed a lawsuit against the bank for wrongful dismissal. Shaw, who once led Pan-Asia Execution Services at Citigroup, was fired in March 2019. His dismissal followed similar job terminations within Citigroup’s Asia markets division, which led to multiple legal cases brought by his ex-colleagues.

Shaw has filed a lawsuit in Hong Kong’s High Court against Citigroup Global Markets Asia Ltd. According to the legal documents (called a “writ of summons”), Shaw is seeking financial compensation. This includes the retirement benefits he lost when he was fired and additional damages for the harm he says his reputation suffered due to what he claims was unfair treatment. Now let’s understand why was Shaw fired.

Why Was Shaw Fired?

Shaw was dismissed along with other senior sales traders after Hong Kong’s financial regulators discovered serious misconduct within Citigroup’s Asia markets division. This misconduct reportedly went on for about 10 years. Shaw, who held the rank of managing director, was the most senior member of the team that was terminated.

In March 2023, Hong Kong’s Securities & Futures Commission (SFC) banned Shaw from working in the financial industry for 10 years. According to the SFC, Shaw’s actions as a senior manager fell well below the standards expected for someone in his position.

Citigroup’s Troubles in Asia

Shaw’s dismissal was part of a wider scandal involving Citigroup’s Asia markets division. In 2022, the Hong Kong regulator fined Citigroup HK$348.3 million (around $44.8 million) and criticized the bank for major internal control failures. The regulator found that some Citigroup sales traders had been involved in misleading practices, such as falsely labeling offers to buy or sell stocks to create more trading activity.

As a result of these issues, Citigroup shut down its Asia high-touch equities sales trading desk in 2019 and fired multiple employees without notice, accusing them of serious misconduct. Those employees, including Shaw, also lost their retirement savings that had been built up during their time at the company.

Legal Actions by Former Citigroup Employees

Shaw is not the only former Citigroup employee to take legal action after being fired. Several of his ex-colleagues in Hong Kong, Tokyo, and London have also filed wrongful dismissal lawsuits. These former employees claim that Citigroup treated them unfairly, conducted biased investigations, and used them as scapegoats for problems that had existed for years. They also argue that senior management had allowed these questionable sales practices to continue unchecked.

Citigroup, however, has defended its actions, saying that it carried out thorough investigations before deciding to terminate the employees.

Previous Legal Rulings

Some of the former employees who were fired have already had their cases heard in court, with mixed outcomes:

• UK Case: In 2023, Citigroup reached a settlement with Ian Weir, a former member of its Asia-Pacific markets team, after a UK employment tribunal ruled in Weir’s favor.
• Japan Case: In 2023, a Japanese court ruled that Citigroup must compensate another former trader who had been dismissed.
• Hong Kong Case: In December 2024, the Hong Kong courts ruled in favor of Cindy Lui, another ex-sales trader who was fired along with Shaw. Lui was awarded her unpaid pension and the salary she would have earned if Citigroup had given her proper notice before firing her. However, the court rejected her request for additional compensation for lost job opportunities.

Lui is currently seeking a review of that decision, and the next court hearing is scheduled for April 2.

Shaw’s Legal Strategy

Shaw’s legal case may be influenced by the outcomes of the ongoing lawsuits brought by his former colleagues. The legal writ he has filed in the Hong Kong High Court is valid for 12 months, giving him time to decide whether to fully pursue the case. He may wait to see how the other wrongful dismissal cases unfold before making his next legal move.

Recent Developments

Following Lui’s partial victory in court, four more former Citigroup sales traders filed similar wrongful dismissal claims in Hong Kong earlier this month. The legal battle between Citigroup and its former employees shows no signs of slowing down, as the fallout from the Asia markets scandal continues to play out in courtrooms across the globe.