2nd Circ. Skeptical Of $163M Citi Risky Investments Suit

Law360, New York (September 21, 2011, 7:07 PM EDT) -- A Second Circuit panel on Wednesday expressed skepticism about reinstating a fraud case that an Italian bank and a Norweigan securities firm brought against Citigroup Inc. over losses they suffered on about $163 million in bond-backed investments.

Italy's Banca Carige SPA and bankrupt Norwegian firm Terra Securities ASA claim that Citigroup misled them when it sold investments linked to tender offer bonds. Citigroup allegedly offered presentation material that overstated the investments' value and understated their risk.

The two say that if the Second Circuit does not...
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