Citadel drops U.S. Portofino suit as it pursues founder in U.K. bankruptcy case

Citadel told the New York court the decision to stop pursuing the case had nothing to do with the merits of its claims. Instead, it said it had already prevailed in a separate London arbitration against Portofino’s founders on employment-related claims including breach of contract, unlawful means conspiracy and deceit, winning damages and legal costs that the High Court later recognized and made enforceable.

Despite that victory, Citadel said it has been unable to collect the award, leading to the bankruptcy petition against Lancia.

In the filing, Citadel says Lancia owes 5.98 million pounds of the 2025 award by the London Court of International Arbitration as well as interest and costs.

The petition says the awards were recognized by England’s High Court in February, a statutory demand served in April went unsatisfied, and Lancia’s attempt to set aside that demand was dismissed in May.

Citadel estimates it holds security worth only about 21,886 pounds against the debt, mostly small bank accounts and minority interests in French companies.

In the letter accompanying the U.S. dismissal, Citadel also noted that Lancia is subject to a worldwide freezing order and faces bankruptcy proceedings, adding that evidence presented at a June 26 High Court hearing failed to persuade the court that his ownership stake in Portofino held significant value.