Citigroup Is Accused in Swisscanto Suit of Misleading Holder

Citigroup Inc. (C), the third-biggest U.S. bank by assets, was accused in a lawsuit by Swisscanto Asset Management AG of misleading the Swiss firm about the bank’s financial condition from 2006 to 2009.

Swisscanto, based in Zurich, filed a lawsuit today in Manhattan federal court, accusing New York-based Citigroup and its former officers and directors of making deceptive comments about losses related to mortgage securities. Swisscanto and Swisscanto International seek unspecified damages.

“Due to defendants’ repeated material untrue statements and non-disclosure of material information to investors, plaintiffs purchased Citi securities at inflated prices,” Swisscanto said in its complaint.

A class-action, or group, lawsuit over essentially the same claims has been pending in Manhattan federal court, according to the complaint. Swisscanto on Dec. 4 asked to be excluded from the class, according to the complaint.

“We believe the suit is without merit and will defend against it vigorously,” Shannon Bell, a spokeswoman for New York-based Citigroup, said in an e-mail.

The suit is Swisscanto v. Citigroup, 12-cv-9050, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: David Glovin in New York at dglovin@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

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