Citigroup loses case to recoup millions from transfer goof

Feb. 16, 2021 10:28 AM ETCitigroup Inc. (C)CBy: Liz Kiesche, SA News Editor36 Comments
  • Citigroup (NYSE:C) shares fall 0.4% after the bank loses its lawsuit seeking to recoup $900M it had mistakenly transferred to Revlon lenders. Before the decision was reported, Citi shares had risen as much as 2.3%.
  • The court ruled that the transfer was "final and complete transaction[s], not subject to revocation."
  • Citi can still appeal the decision, so the court said the defendants "are not necessarily free to do with the money what they want." Therefore, temporary restraining orders remain in effect on the defendants.
  • The defendants — including Brigade Capital Management, HPS Investment Partners, and Symphony Asset Management plus seven others — claimed that they were owed the payment since Revlon was in default on a loan.
  • U.S. District Judge Jesse Furman ruled that the defendants "believed, and were justified in believing, that the payments were intentional" at the time of the transfer, especially since the amount of the transfer was the exact amount owed to the firms.

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