Citigroup, RBS, UBS Sued Over $845 Million in Mortgage Bonds
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Citigroup Inc., Royal Bank of Scotland Group Plc and UBS AG were sued in separate cases in New York, accused of fraud in the sale of a total of $845 million in mortgage securities.
DZ Bank AG sued Citigroup and RBS, while HSH Nordbank AG sued UBS and RBS, according to papers filed today in New York State Supreme Court. The German banks say offering materials contained misrepresentations about loans backing the securities, leading to losses.