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Two GAM funds have launched a lawsuit against the U.S. investment bank Citigroup, according to various reports in the Swiss press. The complaint, filed on 13th December in New York, includes 13 counts of fraud, negligence, and violation of the duty to inform shareholders.
Swiss & Global Asset Management’s two funds (which are part of GAM Holding), one based in Switzerland and the other in Luxembourg, are together asking for $43m ($44.6m) in damages for losses made in Citigroup share investments after the start of the credit crisis, reported Swiss daily paper Le Temps.
Swiss bank UBS is part of the plaintiffs’ group, via its subsidiary in Julius Baer Asset Management Ltd, which owned GAM when all this happened. The 230-page complaint is presented by Grant & Eisenhofer, the same lawyers who represent U.S. and European investors against UBS in a separate suit; the two sets of complaints are apparently almost identical.
Citigroup and its management are accused of hiding the extent of the losses incurred when betting in debt linked to the real estate market, and to have waited too long before informing shareholders of the real losses, said Le Temps. Citigroup’s stock dropped by almost 95% of its value between mid-2007 and end-2008 – more than UBS’s.
GAM Holding AG is based in Zurich and listed on the SIX S...................... To view our full article Click here
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