Citigroup's Counterclaims Nixed In Investors' $1B CDO Suit

Law360, New York (October 22, 2013, 2:06 PM EDT) -- Citigroup Inc. can't countersue the investors who first sued it over a $1 billion securities deal, a New York state judge ruled Tuesday, finding that if it prevailed, the bank's harsh but novel response would be a Pyrrhic victory and create a more skittish investment community.

In a bench ruling, Judge Jeffrey K. Oing dismissed the breach of contract and fraud counterclaims that Citigroup had leveled at the plaintiffs — special purpose investment vehicles formed by IKB Deutsche Industriebank AG — who had accused the bank...
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