Norwegian Cities Accuse Citigroup Of $200M Swindle

Law360, New York (August 11, 2009, 1:09 PM EDT) -- The bankruptcy estate of Terra Securities ASA and seven Norwegian cities have hit Citigroup Inc. with a $200 million securities suit, accusing the financial giant of tricking the municipalities into buying risky derivatives that essentially provided credit insurance for the company as credit markets began to head south.

According to the complaint, filed Monday in the U.S. District Court for the Southern District of New York, Citigroup — along with its global markets and alternative investment units — misrepresented its fund-linked notes as conservative investments....
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