Lawyers representing Citigroup argued last week for summary dismissal of a 2009 lawsuit by Terra accusing the bank of inflating the price of EMI Group by not disclosing that the only remaining bidder, Cerberus Capital Management, had withdrawn from the auction.

Terra alleges that during the final days of the auction of EMI three years ago, the head of Citi's UK investment banking business, David Wormsley, made false statements to Terra chief executive Guy Hands and that Terra Firma relied ...