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Terra Firma drops EMI lawsuit in the US

10 Mar 2014

UK private equity firm Terra Firma has ended its bid for damages from Citigroup over the firm’s 2007 deal for music publisher EMI in the US courts.

However, the firm will continue to pursue the case in the UK. A statement said, “Terra Firma and Citigroup have together decided that their disputes should be resolved in one set of proceedings. The parties have consented to the transfer of the claim before the New York court to England, to be consolidated with the proceedings that are ongoing before the English court.”

Hands claims that Citi wrongfully seized back EMI after financing Terra Firma’s acquisition in 2007. Citigroup took control of the record label after over a year of negotiations, narrowly-missed covenant defaults and EMI management reshuffles.

Terra Firma was seeking $2bn in damages over claims EMI, and last year secured a new trial after a previous hearing found for Citigroup.

The jury at the 2010 New York trial decided that Citigroup banker David Wormsley had not misled Terra Firma in the run-up to the private equity firm’s £4.2bn takeover of EMI.

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