A former managing director has sued Citigroup, alleging biased internal investigations, entrenched sexism and a “weaponised” HR function that she claims protected senior male executives while targeting women.
The lawsuit, filed on 26 January in the US District Court for the Southern District of New York, was brought by Julia Carreon, a former managing director in Citi’s wealth management business. She accuses Citigroup Inc. and Citigroup Global Markets of race and sex discrimination, a hostile work environment and constructive dismissal under New York state and city law and federal civil rights statutes.
Carreon joined Citi in August 2021 as a managing director tasked with helping drive a digital transformation within the bank’s newly created wealth unit, a key part of chief executive Jane Fraser’s strategy. According to the complaint, she encountered resistance from an all-male, predominantly white leadership group, with senior executives allegedly undermining her authority and dismissing her work.
The filing alleges that one senior executive openly shouted at her in meetings and ignored her contributions, despite prior complaints about his conduct. Carreon says management failed to intervene or provide support.
She further alleges that her then supervisor made dismissive remarks about her performance, while a subsequent technology head told her the bank had made a mistake hiring her and instructed her to step away from transformation work. The complaint says senior leaders agreed she should be sidelined to avoid “rocking the boat”.
Despite this, Carreon says she took on additional responsibilities, including leading a major operational project involving faster trade settlement, which she claims was delivered successfully across global teams.
Her profile rose in 2023 after a leadership change in Citi’s wealth business. The lawsuit alleges that while she was later promoted, office gossip and conduct by a senior executive fuelled speculation of an inappropriate relationship, which she strongly denies.
The most serious allegations relate to Citi’s people function. Carreon claims HR launched two investigations into her conduct: one alleging bullying and another questioning whether she had advanced because of “special access” to a senior leader. She alleges HR questioned her about supposed indiscretion and gossip, while the male executive at the centre of the rumours was not subjected to scrutiny.
According to the filing, HR told her it had spoken to dozens of employees and suggested that widespread rumours about an affair existed. Carreon says the process caused severe distress and reputational harm, and that her complaints were dismissed as routine.
She alleges that this pattern reflected a broader culture in which women were penalised for assertiveness, while male executives accused of bullying were promoted or protected.
By mid-2024, Carreon says she felt she had no option but to resign, describing her exit as a constructive discharge. She is seeking back pay, compensatory and punitive damages, and legal costs.
The lawsuit has been filed under legislation that allows sexual harassment-related claims to proceed in court rather than private arbitration. The claims remain unproven, and Citigroup has not been found liable. The bank has not yet responded publicly to the allegations, according to court records.