US Supreme Court rejects Citigroup bid to block $1b Oceanografia lawsuit

Citigroup said the bondholders should not have been allowed to pursue their "garden-variety" securities fraud civil claims under the Racketeer Influenced and Corrupt Organisations Act, or RICO. This federal anti-racketeering law allows for triple damages.

The bank also said the 11th Circuit decision conflicted with rulings from three other federal appeals courts. In response, bondholders said Congress did not intend to preclude their RICO claims simply because someone else, such as the SEC, might have pursued securities fraud claims.

The bondholders also said it was possible no private plaintiff could bring securities fraud claims. This is because there was no allegation that anyone traded in reliance on fraudulent statements.

(Reporting by Jonathan Stempel; Editing by Will Dunham)