Citigroup Faces Revived Investor Suit Over Fraud in Mexico (2)

Citigroup Inc. will have to face a lawsuit from investors who claim they lost more than $1 billion in a fraud involving a Mexican oil services company after a federal appeals court revived the case Thursday.

The US Court of Appeals for the Eleventh Circuit overturned a lower court ruling that said investors failed to establish that Citigroup employees in New York and Miami conspired with bankers at the company’s Mexican subsidiary to fraudulently advance funds to the failing oil services company.

“The plaintiffs allege that Citigroup conspired and participated in a vast fraudulent scheme,” Judge Britt C. Grant’s opinion ...