Citi/EMI Lawsuit Staying In New York
March 25, 2010 at 4:01 AM (PT)
CITIGROUP's bid to move its legal battle with EMI to The U.K. was turned down by a federal judge YESTERDAY (3/24), reports THE NEW YORK POST. "CITI is based in NEW YORK, not ENGLAND, and will have to answer to a group of NEW YORK jurors," said CHRIS DUFFY, a lawyer at BOIES, SCHILLER & FLEXNER who represents TERRA FIRMA.
A CITI spokeswoman e-mailed THE POST, "We are disappointed with the court's procedural ruling. We look forward to defending ourselves in this case, which we believe is entirely without merit."
The lawsuit centers on TERRA FIRMA's allegations that CITI misled TERRA FIRMA CEO GUY HANDS into investing approximately $5 billion to buy the label. "In 2007, the lawsuit alleges, CITIGROUP banker DAVID WORMSLEY knew that TERRA FIRMA was the only interested bidder for EMI, but portrayed CERBERUS CAPITAL MANAGEMENT as a rival suitor. TERRA FIRMA said it only made a binding offer because it thought CERBERUS was still involved," writes THE POST.
U.S. District Court Judge JED RAKOFF has set an OCTOBER trial date.