The private equity firm Terra Firma has filed a case in the New York court against the Citigroup alleging the banking firm of doing fraud while selling the troubled music company EMI before three years. Terra Firma has submitted the legal papers in which it described how the Citigroup was benefited from the deal of EMI.

According to the private equity firm Citigroup introduced a fake buyer for the music company and raised the price of the company. On the other hand, Citigroup has said that there was nothing to file a case and all the allegations were from no base.

On a counter attack Citigroup has said that the Terra Firma failed to manage the company and facing losses from it that’s why it is trying to accuse us with no source allegations. But a federal judge will decide whether to go with further trial or to stop the case.

An attempt of out of court settlement had not worked just before few weeks and Terra Firma went to the court. The Terra Firma is demanding billions of dollars as compensation from Citigroup as the music firm EMI has more than 3 billion pounds of debt.