A Legal Revival That Could Explode
The case was initially dismissed in 2023 by U.S. District Judge Darrin Gayles, but the 82-page opinion written by Circuit Judge Britt Grant reverses that decision, citing the “sufficiently detailed” allegations. Judge Grant didn’t mince words in the ruling:
“Citigroup is one of the world’s most sophisticated financial institutions, and it strains credulity to conclude that, assuming the plaintiffs’ allegations are true, Citigroup lacked awareness of Oceanografía’s activities.”
In other words, the court found it implausible that a financial juggernaut of Citigroup’s caliber could be duped—suggesting complicity instead of negligence.
The Fallout: Fired Execs, SEC Fines, and a Cloud Over Citigroup
This isn’t Citigroup’s first bruise in the Oceanografía debacle. After uncovering $430 million in fake cash advances, the bank fired 12 employees, while Mexican authorities pointed the finger at 10 others for criminal violations. In 2018, the SEC fined Citigroup $4.75 million for failures in Banamex’s internal controls.
The legal rebuke now sets the stage for a full-blown trial unless a settlement is reached. Plaintiffs, including Rabobank and several investment funds, say they’re ready to fight.
“My clients are gratified by the court’s decision,” said Juan Morillo, a lawyer representing the plaintiffs.
Meanwhile, Citigroup has chosen silence. Spokeswoman Danielle Romero-Apsilos declined to comment.
