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Terra Firma sues Citigroup

Published on 14 Dec 2009 under category: legal

Banking giant Citigroup is being sued over alleged misrepresentation.

The legal action launched by Terra Firma relates to the private equity group's purchase of EMI in 2007.

Terra Firma has accused Citigroup of falsely claiming that there was another party interested in the record label during the bidding process.

The bank is accused of taking this action in an effort to drive up the price that Terra Firma had to pay to purchase EMI.

Citigroup is also accused of attempting to force EMI into bankruptcy in an effort to bring about a merger deal with fellow record label Warner Music.

In other lender news, the CIT Group last week appeared close to emerging out of bankruptcy protection.

This came after the firm's pre-packaged reorganisation plan was approved by the US Bankruptcy Court for the Southern District of New York.

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