Citigroup Says Arbitration Panel Favors Bank Over Abu Dhabi
Citigroup Inc. (C), the third-biggest U.S. bank, said an arbitration panel awarded in its favor on all claims made by the Abu Dhabi Investment Authority tied to its $7.5 billion investment in the New York-based lender.
The panel issued its finding on Oct. 14, Citigroup said today in a regulatory filing. The case dated back to 2009, when the Abu Dhabi fund, known as ADIA, alleged “fraudulent misrepresentations” in connection with the investment and sought to abort the deal or recover damages in excess of $4 billion if the purchase was upheld, Citigroup said in a statement on its website at the time.
ADIA agreed to inject $7.5 billion into Citigroup in November 2007, as the bank faced record losses tied to subprime mortgages. Shares in the bank have fallen about 90 percent since the end of November 2007.
Shannon Bell, a spokeswoman for the bank, declined to comment.
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