Bloomberg reports that an appeals court in Manhattan Friday overturned the 2010 verdict in which Citigroup defeated Hands’s claim that it tricked him into overpaying for EMI, the London-based music company.
The appeals court ordered a new trial, ruling that the judge made an error in explaining the law to the jury.
'The district court’s jury instructions were based on an inaccurate understanding of the relevant English law', U.S. Circuit Judge John M. Walker Jr. wrote on behalf of a three-judge appeals panel.
Hands claimed that a Citigroup banker, David Wormsley, lied to him in phone calls the weekend before the EMI auction on May 21, 2007, a Monday, leading his private-equity firm to overbid in a deal that lost money for all involved.
Hands said Wormsley told him that Cerberus Capital Management LP planned to submit a bid when Cerberus had in fact decided to withdraw from the auction, leaving Terra Firma without competition.
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