Citi(US:C) Xin Lang Cai Jing·2026-01-12 15:13Core Viewpoint - The U.S. Supreme Court has rejected Citigroup's appeal, requiring the bank to face a lawsuit alleging it orchestrated fraud that led to over $1 billion in losses for Oceanografia, a bankrupt oil services company in Mexico [1][5]. Group 1: Lawsuit Background - The lawsuit, initiated by over 30 plaintiffs including bondholders and shipping companies, has been ongoing for ten years and will continue following the Supreme Court's decision [1][5]. - Oceanografia provided drilling services for Pemex, Mexico's state oil company, and was taken over by the government in 2014 before declaring bankruptcy two years later [1][5]. Group 2: Allegations Against Citigroup - Plaintiffs accuse Citigroup's Banamex division of providing $3.3 billion in loans to Oceanografia between 2008 and 2014, despite knowing the company was heavily indebted and allegedly forging Pemex's signatures on authorization documents [1][5]. - Citigroup later discovered $430 million in fraudulent prepayments related to these loans [6]. Group 3: Court Findings - The Eleventh Circuit Court found sufficient evidence that Citigroup concealed critical information about Oceanografia while profiting from interest on the fraudulent prepayments [6]. - The court expressed skepticism regarding Citigroup's claim of ignorance about Oceanografia's actions, stating it was "incredible" for such an experienced bank to be unaware [2][6]. Group 4: Legal Arguments - Citigroup's appeal focused on the bondholders' claims, arguing they lacked the right to file a civil lawsuit under the RICO Act, which allows for triple damages in cases of racketeering [3][6]. - The bank contended that the Eleventh Circuit's ruling conflicted with decisions from three other federal appellate courts [4][6]. - Bondholders countered that the law was not intended to strip them of their rights to seek redress simply because other agencies might have pursued similar claims [4][7].