Citi sued for profiting from fund’s demise as Covid struck

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 $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.

Citigroup undervalued the assets it

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