Clifford Chance

Clifford Chance represents Citi in trial win over USD 2.4bn EMI acquisition

Clifford Chance has represented Citi on the bank's successful defence against Terra Firma's £1.5bn law suit before Mr Justice Burton in the High Court in London, which alleged that Citi induced it to bid for EMI by making fraudulent statements in conversations with Terra Firma's Principal, Guy Hands. The case followed Terra Firma's previous unsuccessful attempt to litigate its fraud claims in New York, and ended when the firm withdrew all allegations of fraud against Citi and 3 senior officers in the first week of the six weeks scheduled for the trial. Terra Firma also agreed to pay Citi's legal costs for the London trial.

The conclusion of the case marks the end of eight years of Clifford Chance and Citi working closely in both the USA and UK to manage issues relating to the sale of EMI. Over this time Clifford Chance lawyers advised Citi on its negotiations with Terra Firma over breaches of the loan covenants; assisted Citi's US counsel win the US jury trial; handled Citi's enforcement of its security through a pre-pack administration; and handled the subsequent division of EMI records and the sales to Sony and Universal.

Citi was represented by a Clifford Chance litigation team led by Partners Roger Leese and Maxine Mossman, instructing Brick Court Chambers’ Mark Howard QC and Fred Hobson and 3 Verulam Buildings’ Peter Ratcliffe and Nathaniel Bird.