Two Mexican foreign exchange traders who accused Citibank of failing to disclose millions of dollars of markups and declining to complete unprofitable trades have failed to support their claims of fraud, a federal judge in Manhattan has ruled. Traders Eduardo Negrete and Gervasio Negrete alleged that Citibank failed to execute transactions “for the sole reason that it was not going to realize a profit.” But Judge Robert Sweet of the U.S. District Court for the Southern District of New York ruled on Thursday that generalized allegations about profit motives are not enough to sustain fraud claims. To read the full story on WestlawNext Practitioner Insights, click here: bit.ly/1THtWOh
A lawsuit against Citibank , accused of failing to disclose millions of dollars of assets and failing to complete unprofitable trade , has failed to gain support for allegations of fraud by the Mexican foreign exchange market . The case in Manhattan was tossed by the judge , who said that the allegations were generalised and not enough mount a case against Citibank .