Citi chases $60bn damages in Wachovia dispute
Citi is pursuing its claim for $60bn (£34bn) in damages after dropping its attempt to purchase the assets of Wachovia, writes the New York Law Journal. Citi is no longer seeking to block the acquisition of Wachovia by Wells Fargo for $15bn (£8.6bn) but insisted in a statement last week (9 October) that "it has strong legal claims against Wachovia, Wells Fargo and their officers, directors, advisers and others for breach of contract and for tortious interference with contract" and that it "plans to pursue these damage claims vigorously." Wachovia filed notice of removal of Citi's state suit on Friday (10 October). Southern District of New York Judge Lewis Kaplan will now hear Citi's argument for an order of remand.
October 13, 2008 at 11:38 AM
2 minute read
Citi is pursuing its claim for $60bn (£34bn) in damages after dropping its attempt to purchase the assets of Wachovia, writes the New York Law Journal.
Citi is no longer seeking to block the acquisition of Wachovia by Wells Fargo for $15bn (£8.6bn) but insisted in a statement last week (9 October) that "it has strong legal claims against Wachovia, Wells Fargo and their officers, directors, advisers and others for breach of contract and for tortious interference with contract" and that it "plans to pursue these damage claims vigorously."
Wachovia filed notice of removal of Citi's state suit on Friday (10 October). Southern District of New York Judge Lewis Kaplan will now hear Citi's argument for an order of remand.
Kaplan conducted a telephone conference with the three parties on Friday morning. He said that he did not see any reason to hold an immediate hearing.
Kaplan instructed the parties to send him certified copies of all papers filed with New York State Supreme Court Justice Charles Ramos in Citi's lawsuit. Ramos has scheduled a hearing for Tuesday on the suit.
Gregory Joseph, representing Citi, confirmed for the judge that Citi's action was now just one for damages and that it was no longer seeking to block the deal.
"We can deal with this in normal, methodical fashion, which will include addressing the threshold issues about which lawsuit should be where and which claims should be in which lawsuit," Joseph said.
But David Boies of Boies Schiller & Flexner said there were two reasons why there remained some "significant urgency" in the matter.
"First, Citi's press people are out telling the press… that because of the size of the $60bn damage claim that Citi has raised, this threatens the Wells Fargo deal and that Wells Fargo and Wachovia would be forced to settle this case before they can close."
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