Citi Sued, Goldman Wants Ex-Employee Dispute To Go To Arbitration

Judge Me Not

Citigroup has been sued by Sealink Funding Ltd. for damages tied to an investment in $513m worth of residential mortgage-backed securities.

Bloomberg reports that Sealink, in a suit filed Wednesday in New York State Supreme Court in Manhattan, accused Citigroup of misrepresenting and omitting information on the underwriting standards used to issue loans pooled to create the securities. Sealink is seeking more than the principal amount of the securities in damages.

In the meantime, Reuters reports that a lawyer for Goldman Sachs urged a U.S. appeals court Wednesday to send a former employee's gender discrimination dispute to arbitration rather than allow her to proceed with a proposed class action.

The case is being watched closely because it could help other employers avoid discrimination class actions like the one filed by Lisa Parisi, a former Goldman Sachs managing director.

The Goldman case at issue Wednesday was filed in 2010 by three women, including Parisi. The lawsuit accused Goldman of gender bias and an 'outdated corporate culture' favoring men over women for pay and promotions.

Citigroup Sued by Sealink Over Mortgage-Backed Securities

Goldman urges court to require arbitration in gender bias case

image: © Steve Punter

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