It is reported that Greek steelmaker Halyvouriko is suing Citigroup accusing the financial services giant of publishing a malicious research note designed to damage the company and boost its own revenues. Halyvouriko alleges that Citigroup published a series of plainly false facts in a research note on the Greek steel sector.

The lawsuit claims the research note, published in October 2007, used flawed methodology to compare Halyvouriko unfavorably with its main rival Sidenor, a Citigroup client.

It claims that the research note was calculated to cause pecuniary damage by understating Halyvouriko's revenues, market share and growth prospects, painting it as a failing company.

The lawsuit says "The inescapable inference is that Citigroup acted in this way because it was motivated by the desire to damage or disparage Halyvouriko and thereby increase the likely investment in Sidenor, through which Citigroup stood to gain commercial benefit or advantage."

Halyvouriko is claiming unspecified damages in the lawsuit, which was filed at the High Court in London.

Citigroup said that "We are aware of this claim and considers it without merit. Citi will vigorously defend its position."

Meanwhile, lawyers said that even if Halyvouriko can prove the information was false, it may be difficult to succeed with such a claim because the claimant would need to convince the court that the research note was malicious.

(Sourced from business.timesonline.co.uk)