A federal judge on Monday rejected a bid by the Abu Dhabi Investment Authority to overturn an arbitration panel's ruling favoring Citigroup Inc in a dispute over a $7.5 billion investment by the sovereign wealth fund in the bank.

District Judge George Daniels in Manhattan rejected arguments that the 2011 ruling ignored applicable law, and was "fundamentally unfair" because the Abu Dhabi fund was deprived of the chance to properly present its case.

The Abu Dhabi fund had sought $4 billion in damages over what it called Citigroup's fraudulent representations prior to the investment in November 2007, which followed billions of dollars in writedowns at Citigroup linked to subprime mortgages.

(Reporting by Jonathan Stempel in New York; editing by Carol Bishopric)