Terra Firma Requests New Trial In Citi Suit Over EMI
October 8, 2012
Terra Firma has asked a U.S. appeals court for a new trial in its lawsuit against Citigroup, over the last sale of EMI. Terra Firma has alleged that Citi led the private equity group to believe it was bidding against a rival in the auction for EMI in 2007. However, Terra Firma ended up as the only bidder for the label, which it lost control of back to Citi, leading to its eventual sell-off this year.
In 2010, a New York jury found that Citi was not liable for fraud. However, the Wall Street Journal reports that last Wednesday, Terra Firma lawyer David Boies argued before a U.S. Second Circuit Court of Appeals that the burden of proof was actually on Citi, not Terra Firma in the case. The next day, Citi lawyer Jay Cohen said that the British laws were properly interpreted two years ago by the judge in question and the case was determined by the jury's belief of Terra Firma head Guy Hands and his testimony.