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Citi Files 3rd Lawsuit In Recovering $900 Million Transferred By Mistake

By Staff

In its latest attempt to recover the $900 million it mistakenly sent to lenders of Revlon Inc, Citigroup Inc has filed a third lawsuit on Friday, a Reuters report said. The American bank has sued a dozen firms over an "operational error" that transferred $900 million of its own funds to Revlon creditors a day after the troubled cosmetics company was sued over its restructuring tactics.

Citi Files 3rd Lawsuit In Recovering $900 Million Transferred By Mistake

Citi allegedly, after discovering its mistake, had asked the recipients to return its money. The financial services giant then filed a suit to recoup money from HPS Investment Partners LLC, Symphony Asset Management LLC, and Brigade Capital Management LP, all of whom are lenders of Revlon, who reportedly refused to return the amount.

Citi, which is acting as an agent for a loan involving dozens of creditors, including the big hedge funds, allegedly transferred the money in error from its own accounts, on behalf of Revlon.

According to American news reports, Brigade's legal representatives said that the hedge fund will not return the amount received as the payments could be presumed to be correct, due to the fact that they were in the exact amounts owed by Revlon as per their credit agreement.

Citi has reportedly recovered over $500 million from the lenders. "All of the funds owed to Citi have now either been returned or frozen by court order," the bank said in the statement. "We believe the law is on our side and that we will recover the outstanding funds," it added.

Read more about: citi citigroup
Story first published: Saturday, August 22, 2020, 14:48 [IST]
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