Always remember to put the broadest possible disclaimers of liability into all your marketing documents and contracts. It’s not like anyone is going to read those things anyway, at least not until they’ve already lost $1 billion.
Citigroup Inc. failed to persuade an appeals court to throw out a lawsuit that claims it lied about the riskiness of securities valued at almost $1 billion, as the world’s biggest banks continue to defend against allegations they misled investors in the run-up to the financial crisis…
Citigroup had argued the fraud claim should be dismissed because Loreley hasn’t shown that it relied on bank documents to buy the securities.
The appeals court said that while disclaimers made in “carefully drafted documents executed by sophisticated commercial parties” are usually enough to protect sellers from liability, Citigroup’s disclosures didn’t address the misrepresentations and omissions alleged by Loreley.