Citigroup lost an appeal on Wednesday aiming to block Abu Dhabi Investment Authority from pursuing a second arbitration over the sovereign wealth fund's $7.5bn investment in late 2007 to shore up the then-struggling bank.
Reuters reports that the 2nd U.S. Circuit Court of Appeals in New York ruled that Citigroup had not demonstrated a basis for an injunction based on its argument that the case was precluded after a federal court confirmed the results of an earlier arbitration it won.
U.S. Circuit Judge Peter Hall wrote that 'it is the arbitrators, not the federal courts, who ordinarily should determine the claim-preclusive effect of a federal judgment that confirms an arbitration award'.
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