Citi Sued for Profiting From Fund’s Demise as Covid Struck
- Date: 24-Aug-2021
- Source: Yahoo News
- Sector:Financial Markets
- Country:Middle East
Citi Sued for Profiting From Fund’s Demise as Covid Struck
(Bloomberg) -- Citigroup Inc. is facing a lawsuit for pulling support from a European credit fund as the Covid-19 pandemic roiled the markets, then giving its own traders a potential profit at the fund’s expense.
The New York-based bank was sued by Ver Capital Partners in London for forcing the fund to default on a 224 million-euro ($263 million) loan in March 2020 and selling linked assets to its trading desk. This liquidation process created a conflict of interest at the bank, while ignoring the chance of better offers from other possible buyers and leaving the fund further out of pocket, Ver said in a legal filing.