Citigroup Inc., the third-biggest U.S. bank by assets, was sued by Sealink Funding Ltd. for damages tied to an investment in $513 million worth of residential mortgage-backed securities, Bloomberg News reported today. Sealink, in a suit filed yesterday in New York State Supreme Court, accused Citigroup of misrepresenting and omitting information on the underwriting standards used to issue loans pooled to create the securities. Sealink is seeking more than the principal amount of the securities in damages.
