The firm alleged Citi investment bankers made fraudulent statements to chairman Guy Hands in relation to the auction process and the provision of financing in the deal for the £4.2bn purchase of the now-defunct record label EMI in 2007. The private equity group said it lost more than £1.5bn as a result, with Mr Hands saying he personally lost more than £150m.

Allegation withdrawn unreservedly

But in a surprise turn of events, the allegations were withdrawn unreservedly and Terra Firma said it would pay Citi's costs after the case collapsed in court, meaning the trial that was scheduled for seven weeks lasted just four and a half days.

Cross-examination

The collapse of the case came after just two days of cross-examination of Mr Hands, who was expected to continue giving evidence for the whole of the following week.

Clifford Chance and Mishcon de Reya

Brick Court Chambers' Mark Howard QC was instructed by Clifford Chance for Citi while One Essex Court's Lord Grabiner was instructed by Mishcon de Reya.

Source: Legal Business