Citigroup Says DZ’s $362M RMBS Suit is Too Late

April 8, 2014

Mark S. Arisohn argues on behalf of German bank in RMBS case against Citigroup

In a case regarding alleged fraud in the sale of residential mortgage-backed securities (RMBS), Labaton Sucharow partner Mark S. Arisohn argues that plaintiff Deutsche Zentral-Genossenschaftbank AG bought tranches of RMBS from Citigroup based on misrepresentations, false statements and omissions concerning the quality of the loans. However, Citigroup contends that the case should be dismissed based on Germany’s three-year statute of limitations.

“The issue under the German statute of limitations is whether plaintiff was grossly negligent in not knowing that Citibank made a misrepresentation here with scienter,” Mark said. “There’s nothing here to show that.”