Hedge Fund Seeks $78M From Citigroup Over CDO Losses

Law360, New York (October 24, 2012, 9:33 PM EDT) -- An Australian hedge fund that lost big after it bet on collateralized debt obligations Citigroup Global Markets Inc. built out of high-risk mortgages filed notice Wednesday that it planned to sue the giant investment bank to recoup nearly $78 million.

Basis Yield Alpha Fund, an investment vehicle managed by Australia-based Basis Capital Funds Management Ltd., alleges in a notice filed in New York state court that for two years prior to the housing bubble's burst, Citigroup fraudulently marketed as a solid investment several series of CDOs...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.