On April 22, 2015, the Second Circuit vacated and remanded a district court's decision dismissing on statute of limitations grounds claims Woori Bank brought against Citigroup Global Markets arising out of Woori's purchase of $25 million in collateralized debt obligations. Woori asserted claims for fraud, fraudulent inducement, negligent misrepresentation, and unjust enrichment, alleging that Citi made misrepresentations in connection with its sale of the CDO to Woori. The district court dismissed the action as time-barred, holding that Woori had knowledge of its claim prior to May 2009, the date after which an action would be time-barred under the applicable South Korean statute of limitations. The Second Circuit reversed. It held that the news reports and pitch materials on which the district court had relied to establish Woori's knowledge were not sufficient to put it on notice of its specific claim against Citi because none of them suggested that Citi acted fraudulently in connection with the CDO at issue. Summary Order.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.