Citigroup Must Face $200M Highland CDS Suit, Judge Says

Law360, New York (March 22, 2013, 8:28 PM EDT) -- A federal judge on Thursday largely denied Citigroup Inc.'s bid to dismiss a Highland Capital Management LP's lawsuit accusing the bank of improperly closing a series of credit default swap and financing transactions during the financial crisis and pocketing upwards of $200 million.

Judge Naomi Reice Buchwald of federal district court in Manhattan found that Highland had sufficiently alleged that Citigroup units did not act in good faith when they began to demand margin from the investment manager during the fall and early winter of 2008,...
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