Norges Bank, whose investment unit oversees the 2.79 trillion Norwegian kroner ($473 billion) Government Pension Fund-Global, Oslo, sued Citigroup along with CEO Vikram Pandit and Chairman Richard Parsons over $835 million in losses in Citigroup stock and bonds.
Citigroup misrepresented its financial condition and failed to disclose material information, leading the Norway bank to buy the New York-based bank’s stock and bonds at inflated prices during the period between January 2007 and January 2009, Norges Bank said in the Sept. 17 lawsuit filed in U.S. District Court in Manhattan.
“Citi’s near-demise had its genesis in the company’s increasing willingness to take on risk for the sake of profit, without regard for — and without disclosing — the magnitude of the downside exposure it faced if those risks materialized,” the bank said in the complaint.
The lawsuit names 20 current and former directors and executives including former CEO Charles Prince.
“We believe the suit has no merit and will defend ourselves vigorously,” Citigroup spokeswoman Danielle Romero-Apsilos said in a statement.