Terra Firma vs. Citigroup

CITIGROUP VS. TERRA FIRMA, CONTINUED: U.S. District Judge Jed Rakoff reiterated yesterday his two-page order denying Citigroup’s request to dismiss Terra Firma’s lawsuit against it for allegedly tricking the company into buying EMI Group by insisting there were other suitors for the music concern. Rakoff rejected the bank’s argument that the dispute belongs in a U.K. court and explained why he allowed the case to proceed in New York. “There is a legitimate U.S. interest in learning whether Citi, a major American bank, may be liable for fraudulent inducement, and thus subject to substantial damages,” Rakoff wrote. Citigroup spokeswoman Danielle Romero-Apsilos responded: “We continue to believe that the plaintiff’s lawsuit is entirely without merit and we intend to seek its dismissal.” The trial is set for Oct. 18. (7/27a)