Although Citigroup Inc. (NYSE:C) won the last legal round in its battle against the Abu Dhabi Investment Authority (ADIA), it will be back in court as the ADIA appeals the decision.
The legal argument is in connection with the ADIA’s $7.5 billion bailout for their investment back in the financial crisis, and it’s been going on for years.
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The ruling in favor of Citigroup Inc. (NYSE:C) was released on March 5, and a judge had decided not to overturn an earlier decision made by an arbitration panel. The panel said it found that the bank did not mismanage the capital provided to it by the ADIA, which has been attempting to force the bank to return the funds or $4 billion in monetary damages.
AI-CIO reports that the ADIA filed an appeal on March 22 in New York at the same court where the last case was argued. Back in May 2010, both sides nominated arbiters, and an outside third party was brought in to form the arbitration panel.
After hearing arguments and viewing evidence provided by both sides, the panel ruled in Citigroup Inc. (NYSE:C)’s favor. However, the ADIA said three of the decisions made by the panel disregarded the law and made it “unable to present its case.”
A judge decided that the ADIA had plenty of opportunities to present evidence and dismissed the claims made by the fund. At this point a date has not been scheduled for the next round in this ongoing legal battle.
Spokespeople from Citigroup Inc. (NYSE:C) and the ADIA have not commented on the pending litigation.