NEW YORK (CelebrityAccess MediaWire) — A federal judge has cleared the way for Terra Firma Capital Partners Ltd.'s lawsuit against Citigroup over Terra Firma's 2007 takeover of EMI to go to trial.
According to the Wall Street Journal, Judge Jed S. Rakoff dismissed Terra Firma's claims of tortious interference and negligent misrepresentation against Citigroup, but allowed claims of fraudulent misrepresentation and concealment to proceed.
Terra Firma brought the suit against Citigroup, alleging that the financial giant, which handled the EMI's 2007 private equity sale, misrepresented competitive bids for label group during the bidding process, thus driving up the cost.
Citigroup is also the primary lender in Terra Firma's considerable debt related to the acquisition of EMI.
"We are pleased that Judge Rakoff has rejected Citi's attempt to avoid a trial on both of Terra Firma's fraud claims," noted a Terra Firma spokesman in a statement.
"We believe this case is entirely without merit, and we are confident that Citi will prevail at trial on the remaining two claims," wrote a Citigroup rep in a statement on the judge's decision. – CelebrityAccess Staff Writers