Citigroup (NYSE:) Bid to Drop EMI Lawsuit Rejected by Judge

Business News: Citigroup

Citigroup (NYSE:) had been seeking to get the lawsuit from Terra Firma Capital Partners dismissed, where they were accused of manipulating Terra Firma into acquiring EMI Group.

What the rejection to dismiss the suit means is U.S. District Judge Jed Rakoff ruled the case should be decided in the U.K. Rakoff said he'll write a opinion to explain his ruling in the matter.

According to Terra Firma, Citigroup had withheld information concerning Cerberus Capital Management, which they allege Citigroup told them was still bidding for EMI, when in fact they were no longer going after the company.

Cerberus, like Terra Firma, is a private equity company.

Terra Firma is seeking billions in dollars of lost equity and punitive damages in the case.

Citigroup did have vested interests in EMI, as it was the only one advising and lending on behalf of EMI, although they were also the only financier for Terra Firma as well.