Terra Firma and Citigroup have each filed new court documents ahead of a hearing in New York this week as part of a long-running fraud case brought by EMI Group's private equity owners.

In its documents, Terra Firma alleges Citigroup was responsible for "fraud" through claiming that a rival buyout company was set to bid for EMI.

The documents draw on conversations and emails between Terra Firma founder Guy Hands and David Wormsley, the head of Citigroup's European investment banking business. Terra Firma claims that Wormsley "misrepresented" that Cerberus Capital Management was set to make a bid for EMI.

However Citigroup said in their court filing: "If the case proceeds to trial, Citi will prove the falsity of the charge that Wormsley made any such statements."

"The evidence in this case is overwhelming that Citi has done nothing wrong, and we firmly believe that Citi will prevail in this case, whether on summary judgment or at trial," said a Citigroup statement. "Citi is confident that the court system will ultimately reach the correct result."

Both sides filed the new documents ahead of a date in court this Friday (Sept. 10), when a decision is expected on Citigroup's request for the case to be thrown out.

"This case should not proceed to trial," Citigroup said in its request for summary judgment. "Thirty-six depositions and millions of pages of documents have failed to yield any evidence that creates a triable issue of fact."

If the case goes ahead, a trial date has been set for Oct. 18. The case is Terra Firma v. Citigroup, 09-cv-10459, U.S. District Court, Southern District of New York (Manhattan).