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Citigroup Decision Released by Abu Dhabi Sovereign Fund

Abu Dhabi Investment Authority made public an arbitration ruling against it in its claim against Citigroup Inc. (C) over a $7.5 billion investment in the bank in 2007, after a judge ordered the decision made public.

U.S. District Judge Kevin Castel in Manhattan ordered a redacted version of the 84-page decision made public, over the objections of Abu Dhabi Investment Authority, a sovereign wealth fund also known as ADIA. The fund complied yesterday. Citigroup announced the result of the arbitration in November 2011.

Castel is overseeing a suit filed by Citigroup in August, in which the bank seeks to block ADIA from pursuing a new arbitration over the investment. ADIA, with $627 billion in assets, is the third-largest sovereign fund, after funds held by Norway and Saudi Arabia, according to the website of the Sovereign Wealth Fund Institute.

ADIA put the $7.5 billion into New York-based Citigroup in November 2007. The fund filed an arbitration claim in 2009 after the value of its investment dropped in the financial crisis. ADIA claimed fraud and asked to rescind the agreement or for damages. A panel of three arbitrators ruled that Citigroup wasn’t liable.

The case is Citigroup Inc. v. Abu Dhabi Investment Authority, 13-cv-06073, U.S. District Court, Southern District of New York (Manhattan).

--Charles Carter, Stephen Farr

To contact the reporter on this story: Bob Van Voris in federal court in Manhattan at rvanvoris@bloomberg.net.

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

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