Citigroup’s Capitol Loses Bid to Close Song Reseller ReDigi

Citigroup Inc.’s Capitol Records, a music label set to be acquired by Vivendi SA, lost a bid to have online music reseller ReDigi Inc. shut down.

U.S. District Judge Richard Sullivan declined to issue the preliminary injunction Capitol sought at a hearing yesterday in federal court in Manhattan, saying Capitol didn’t prove irreparable harm. He also called ReDigi’s motion to dismiss the case “premature.”