The state of Pennsylvania ordered Citigroup Inc. to pay hundreds of millions of dollars to buy back auction-rate securities from thousands of investors in the state in the wake of the collapse of the market for the securities at the beginning of 2008.

Dozens of states have reached settlements with the nation's largest financial institutions, including Citigroup, in the past year to resolve charges they misled investors about the liquidity risks of the auction-rate securities they underwrote.

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