Citigroup on Tuesday filed a petition in federal court in Austin, Texas, asking a judge to send Julia Carreon’s lawsuit into arbitration and dismiss her public claims that she was sexually harassed by Andy Sieg, the bank’s head of wealth management. The bank told the court there is "absolutely no factual or legal basis" for Carreon’s allegations and emphasized that she had agreed to be bound by Citigroup’s arbitration policy when she was hired in 2021 and again in 2022.
Carreon, a former managing director who worked in Austin, sued Citigroup in Manhattan one day earlier seeking unspecified damages. In her complaint, she accused Sieg of repeated, public sexual harassment, alleging he suggested they were intimate, told colleagues he and she shared a "special song," and that the bank’s human resources function had been "weaponized" to campaign to force her out.
In its petition to move the dispute behind closed doors, Citigroup highlighted statements it says show Carreon continued to praise Sieg months after the conduct she describes began, and up to her final days at the firm before departing on June 7, 2024. The bank cites an email Carreon allegedly sent to Sieg on May 29, 2024: "You are truly one of the most exceptional people & leaders I’ve ever met. Your integrity is irreproachable.... They are so lucky to have you."
Citigroup also points to a message it says Carreon wrote the day before leaving the bank, directed to Sieg and another senior wealth executive: "Thank you both for attempting to change the culture. It’s not easy. Particularly not for change makers. Tmrw is my last day. Appreciate you. Can’t wait to watch the great things you’ll do." The bank argues these communications undercut her public accusations.
Carreon’s lawyer, Linda Friedman, responded by characterizing her client as a "strong person" who intends to pursue her claims in court. Friedman added: "Citi’s retaliatory filing of a lawsuit against Ms. Carreon after she sued the firm for gender and racial discrimination speaks eloquently to the bullying and intimidation tactics Wall Street firms routinely employ against women or people of color who have the courage to seek reform."
The bank notes that in March 2022, Congress enacted the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, which prevents employers from compelling arbitration for sexual harassment claims. Citigroup’s petition nonetheless points to Carreon’s acceptance of its arbitration agreement in both 2021 and 2022 as a legal basis to move the dispute out of court.
The filing also underscores that Sieg, a high-profile executive recruited by Citigroup Chief Executive Jane Fraser, is not named as a defendant in Carreon’s lawsuit. Beyond that, Citigroup reiterated its position that the allegations lack merit while seeking to have the matter heard privately under arbitration rules.
Carreon’s complaint was filed in Manhattan even though, according to Citigroup, she lived and worked in Austin during her employment. The bank’s petition asks the Austin federal court to enforce the arbitration agreement and remove the dispute from public court proceedings.
Summary - Citigroup has moved to compel arbitration of Julia Carreon’s lawsuit, rejecting her claims of sexual harassment by a senior wealth executive and citing her prior agreements to arbitration and messages praising that executive. Carreon disputes the bank’s move and says she will seek her day in court.