Citi Units Burned Buyer In $348M Metal Co. Deal, Suit Says

Law360, New York (April 24, 2012, 8:42 PM EDT) -- Concrete masonry manufacturer Americas Products and Distribution Inc. on Monday accused Citigroup Inc.'s private equity units of covering up a portfolio company's fraudulent steel sales to the government to trick Americas Products into buying the company as part of a $348 million package.

Americas Products claims Citicorp Mezzanine Partners LP and its sole general partner, Citicorp Capital Investors Ltd., knew Ivy Steel & Wire Inc. was substituting cheap foreign steel for American product on government projects prior to its sale in 2006, according to a lawsuit...
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