Citigroup Hit With Hedge Fund Lawsuits

Tom Burroughes Deputy Editor London 11 April 2008

Citigroup Hit With Hedge Fund Lawsuits

Citigroup, the US bank, faces two lawsuits linked to losses in hedge funds the bank tried to bail out earlier this year, according to Financial News. Robeco-Sage, a hedge fund of funds owned by Netherlands-based asset manager Robeco Group, has filed suit with the New York State Supreme Court alleging that Citigroup made unauthorised trades in the bank’s Corporate Special Opportunities fund, leading to huge losses. Two of Robeco-Sage’s funds had invested $1.25 million (€794,000) in the fund last July. Earlier this year, Citigroup began disallowing withdrawals from the fund and has invested $100 million of its own money.

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