Citigroup must face South Korean bank's lawsuit over failed CDO

April 22, 2015 3:45 PM

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Citigroup must face South Korean bank's lawsuit over failed CDO

NEW YORK (Reuters) - A U.S. appeals court on Wednesday revived a lawsuit in which South Korea's Woori Bank accused Citigroup Inc of defrauding it into buying risky mortgage securities that Citigroup was betting against, prior to the financial crisis.

The 2nd U.S. Circuit Court of Appeals in New York said a lower court judge erred in finding that Woori waited too long to sue over its $25 million investment in 2007 in Armitage ABS CDO Ltd, a collateralized debt obligation that Citigroup sold.

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