(March 28, 2013) — The Abu Dhabi Investment Authority (ADIA) has appealed against a judgement handed down in favour of investment bank Citigroup three weeks ago over the fund’s $7.5 billion injection to the US giant during the financial crisis.
ADIA is appealing against a ruling made on March 5, in which a judge refused to overturn the decision of an arbitration panel that had found Citi had not mismanaged the capital.
The fund has been seeking either rescission of the contract and the return of its investment, or monetary damages of over $4 billion.
The appeal was filed on Friday, March 22, at the Southern District Court of New York – the same court in which the previous case was heard – and is the latest in a prolonged legal battle between the two parties.
In May 2010, each side of the dispute nominated an arbiter, and a third independent was brought in to make up a panel. After several days of evidence from a range of witnesses, the panel found in the favour of the bank. At the beginning of March, ADIA sought to overturn this decision citing “three tribunal decisions that it contends were made in manifest disregard of the law, and which left it unable to present its case”.
At the time, Judge George Daniels said that the tribunal had allowed ADIA “more than an adequate opportunity to present evidence to support its case” and dismissed the fund’s claims.
According to court documents, Citi has appointed legal representatives to fight the appeal. No date has yet been set for a hearing.
ADIA declined to comment on the legal process when contacted by aiCIO this morning.
Citi declined to comment.
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