Del. High Court Prods Citi On $800M Shareholder Action

Law360, Wilmington (April 27, 2016, 10:45 PM EDT) -- Delaware’s Supreme Court pressed a Citigroup Inc. attorney Wednesday to justify its view that only the company can sue for claims related to an investor’s $800 million loss from fraudulent Citi guidance on subprime lending risks, in a closely watched effort to answer a federal appeals court inquiry.

The 2nd Circuit had asked Delaware in November to clarify the state’s corporate law stand on a family investment trust’s right to pursue direct damage claims for losses related to Citigroup’s alleged assurances about investor safety from exposure...
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