Kasowitz filed a securities fraud complaint, on behalf of seven Norwegian municipalities and the bankruptcy estate of Norwegian securities firm Terra Securities ASA, in Manhattan
federal court on August 10, 2009 against Citigroup, Inc., Citigroup Global Markets, Inc. and Citigroup Alternative Investments LLC. The lawsuit, which seeks over $200 million, contends that in 2007 Citigroup fraudulently induced Terra and the municipalities to purchase what Citigroup represented to be safe, but in fact were highly risky, notes linked to a "tender option bond," or TOB, fund purportedly managed by Citigroup in making leveraged investments in United States municipal bonds. As a result of Citigroup’s misrepresentations, the municipalities lost approximately $90 million to, and Terra suffered additional losses when it was forced into bankruptcy. Kasowitz partners Marc Kasowitz, Michael Fay, John Canoni, Charles Miller and associate Kim Conroy lead the representation of Terra and the Norwegian municipalities of Bremanger, Hattfjelldal, Hemnes, Kvinesdal, Narvik, Rana and Vik.