Italian Bank Ties Citigroup Into $47M Fraud Suit

Law360, New York (April 20, 2010, 7:15 PM EDT) -- An Italian bank and its insurance subsidiaries have fired off a $47 million suit accusing Citigroup Inc. of misleading them into believing that a fund-linked total return swap in 2007 was a “safe and conservative” investment.

Banca Carige SpA, along with units Carige Vita Nuova SpA and Carige Assicurazioni SpA, filed the suit in the U.S. District Court for the Southern District of New York on Tuesday, claiming that Citigroup engaged in fraud by misrepresenting the risks associated with the total return swap.

The suit, which...
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