Citigroup Beats Fraud Rap In EMI Case
November 4, 2010 at 5:55 PM (PT)
CITIGROUP was exonerated on fraud charges in a NEW YORK DISTRICT COURT earlier TODAY. The WALL STREET JOURNAL reports that a jury of five men and three women found the company didn't commit fraud against TERRA FIRMA CAPITAL PARTNERS over the EMI purchase.
The decision could cause TERRA FIRMA to lose control of the British music group, as "bankers say it could hamper [TERRA FIRMA Founder GUY] HANDS's ability to raise funds and continue doing deals." Nevertheless, TERRA FIRMA pledged to keep looking to consummate CITIGROUP approximately $4.9 billion.
"We are disappointed that the jury found that we did not prove that we relied on misrepresentations from CITI which caused a loss to our investors," its statement read. "We believe that this was an important action to bring and that we had a responsibility to our investors to bring it."