(C) Norway Sues Citigroup

August 11th, 2009

Terra Securities, a Norwegian firm, and seven Norwegian municipalities have filed a lawsuit against Citigroup Inc. (C) claiming more than $200 million in damages after they lost millions of dollars on investments sold by the company two years ago.

The complaint alleges that Citigroup misrepresented and sold more than $115 million of structured notes as a conservative investment. Citigroup had indicated that the notes were linked to a municipal bond arbitrage fund in May and June, 2007. However, by May 2008, nearly all the original investment was gone and Terra was in bankruptcy, according to the claim.

The court document alleges that Citigroup sold the notes with an intention to free itself from significant risk from either its own or its preferred customers’ balance sheets. Terra and the town investors had borrowed money to buy the notes but were not able to repay the loan amount as a result of losses from the notes.

The New York law firm Kasowitz, Benson, Torres & Friedman is acting on behalf of Terra and the seven municipalities: Bremanger, Hattfjelldal, Hemnes, Kvinesdal, Narvik, Rana and Vik.

Citigroup, however, has condemned the lawsuit and said that it lacks merit.

Zacks Investment Research
View original at: Zacks.com News Feed

More on this topic (What's this?)
With Citigroup’s Recovery Years Away, 2 Banks For The Interim (Investment Underground » Page n..., 1/12/12)
A Look at the Petroleum Sector of Norway (Top Foreign Stocks, 8/15/09)
Maverick Judge Jed Rakoff Stares Down The Street (Money Morning, 12/5/11)
Norway's Sovereign Wealth Fund (Wealth Daily, 9/14/09)
Read more on Citigroup, Investing in Norway at Wikinvest

Related Posts:

  1. (CF) CF Industries Sweetens Terra DealCF Industries Holdings (CF) has taken a step forward in its prolonged battle for acquisition...
  2. (TRA) Terra Industries Inc. – Value – Zacks Rank BuyTerra Industries Inc. (TRA), the nitrogen products manufacturer, posted record earnings in 2008 as nitrogen...
  3. (CF) Stock of the Day: CF Industries (NYSE: CF)Stock of the Day: CF Industries (NYSE: CF) by Matt Weinschenk, Senior Analyst, The White...
  4. (TRA) – Terra Industries – authorizing a share buyback program of 9.5 million, it has repurchased 6.7 million sharesTerra Industries Inc. (TRA) has been cashing in on the big boom in the agriculture...


Search Posts by Tag: | | Financial | Money Center Banks

RSS Feeds by Tag: C | Citigroup Inc. | Financial | Money Center Banks |

Other Posts by: | RSS Feed for this author