Citigroup sued by Lehman Brothers for $2.5 billion

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Citigroup sued by Lehman Brothers for $2.5 billion
Lehman Brothers Holdings Inc has sued Citigroup Inc to recoup $2.5 biliion which was transferred earlier, the company said that Citigroup is wrongfully keeping the money.

Lehman Brothers filed a complaint on Wednesday in the U.S. Bankruptcy Court in Manhattan, the company claimed that Citigroup demanded money when the economic conditions worsened in 2008.

When Lehman filed its bankruptcy on September 15 of that year, Citigroup refused to return money stating it could use it to offset nearly $2 billion in other claims, reports reuters.

However, Citigroup rejected Lehman's allegations, saying it demanded the cash deposits to protect shareholders from any losses in case of Lehman's demise, which it did not want to occur.

"Citi went out of its way to try to help Lehman prior to its bankruptcy filing," spokeswoman Danielle Romero-Apsilos said in a statement.

The company before declaring bankruptcy in 2008, it was the fourth largest investment bank in the USA. Now company is hoping to emerge again and began making payouts soon.

On Friday, the shares of the Citigroup on New York Stock Exchange(NYSE) were trading low at $ 33.66 down by 0.08 points or 1.67%.
Sources from Reuters 

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