The suit also names the other banks that gave a revolving loan to Millennium, including units of Bank of Montreal, Citigroup Inc., and SunTrust Banks Inc. Mark Costiglio, a Citigroup spokesman, declined to comment. Representatives for TA Associates, Bank of Montreal and SunTrust didn’t have immediate comments.
The banks "willfully turned a blind eye" to what they learned about the company while conducting due diligence before selling the loan, the complaint said. The materials the banks prepared for the sale "misrepresented" Millennium’s litigation exposure and the "legality of its business practices," according to the complaint.
The case is Marc S. Kirschner v. J.P. Morgan Chase Bank, 655124/2017, New York State Supreme Court, New York County (Manhattan).
This article was provided by Bloomberg News.