A judge has denied Citigroup's effort to dismiss a lawsuit filed against the company by Terra Firma. Citigroup had filed a motion with the U.S. Federal Court in the Southern District of New York to move the venue to London.

In its lawsuit, Terra Firma alleged that the bank inflated the price by misrepresenting information about the bidding process, such as the fact that the lone other bidder had dropped out of the process the day before bids were due.

Terra Firma initially filed the action in New York State Court on Dec. 11. But Citigroup "removed" the action to Federal Court on Dec. 23, and on Jan. 10 filed a motion to dismiss the complaint on the ground that the loan agreements requires Terra Firma to bring any lawsuit in England.

In dismissing Citigroup's motion, the judge said that the previously ordered case management plan stays in place with a final pre-trail conference set for Sept. 10 this year.